Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 16, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Texas Republic Capital Corp | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 13,937,147 | ||
Entity Public Float | $ 0 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,560,452 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Available-for-sale fixed maturity securities at fair value (Amortized cost: $2,286,379 and $2,284,507 as of December 31, 2016 and 2015, respectively) | $ 2,340,080 | $ 2,275,346 |
Cash and cash equivalents | 10,780,672 | 8,975,991 |
Accrued investment income | 22,709 | 22,709 |
Advances and notes receivable | 35,775 | 39,041 |
Security deposit | 3,992 | 3,992 |
Property and equipment, net | 4,504 | 4,797 |
Total assets | 13,187,732 | 11,321,876 |
Liabilities and Shareholders’ Equity | ||
Accounts payable | 31,344 | 18,848 |
Total liabilities | 31,344 | 18,848 |
Shareholders’ equity | ||
Common stock, par value $.01 per share, 25,000,000 shares authorized, 13,939,147 and 12,865,000 issued as of December 31, 2016 and 2015, respectively, 13,937,147 and 12,865,000 outstanding as of December 31, 2016 and 2015, respectively and 547,500 and 1,009,145 subscribed as of December 31, 2016 and 2015, respectively. | 144,866 | 138,742 |
Additional paid-in capital | 18,299,869 | 15,243,483 |
Treasury stock, at cost (2,000 shares as of December 31, 2016) | (10,000) | 0 |
Offering costs | (2,449,432) | (2,118,916) |
Accumulated other comprehensive income (loss) | 53,701 | (9,161) |
Accumulated deficit | (2,882,616) | (1,951,120) |
Total shareholders’ equity | 13,156,388 | 11,303,028 |
Total liabilities and shareholders’ equity | $ 13,187,732 | $ 11,321,876 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Position (Parentheticals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale fixed maturity securities Amortized cost (in Dollars) | $ 2,286,379 | $ 2,284,507 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 13,939,147 | 12,865,000 |
Common stock, shares outstanding | 13,937,147 | 12,865,000 |
Common stock, shares subscribed | 547,500 | 1,009,145 |
Treasury stock, shares | 2,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | ||
Net investment income | $ 92,166 | $ 91,734 |
Other income | 40 | 48 |
Total revenues | 92,206 | 91,782 |
Expenses | ||
Salaries and wages | 476,812 | 455,131 |
Employee benefits | 62,335 | 56,464 |
Third-party administration fees | 109,668 | 45,579 |
Professional fees | 98,773 | 5,695 |
Office rent | 50,583 | 45,502 |
Office and other expenses | 44,096 | 37,202 |
Taxes, licenses and fees | 35,632 | 30,901 |
Director fees | 34,218 | 27,000 |
Recruiting fees | 33,786 | 0 |
Travel, meals and entertainment | 27,924 | 16,476 |
Bad debt | 28,054 | 0 |
Service and transfer agent fees | 17,264 | 21,430 |
Furniture, equipment and software | 4,557 | 4,483 |
Total expenses | 1,023,702 | 745,863 |
Net loss | $ (931,496) | $ (654,081) |
Net loss per common share issued and subscribed (in Dollars per share) | $ (0.07) | $ (0.05) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net loss | $ (931,496) | $ (654,081) |
Other comprehensive income (loss) | ||
Total net unrealized gains (losses) arising during the period | 62,862 | (80,426) |
Total other comprehensive income (loss) | 62,862 | (80,426) |
Total comprehensive loss | $ (868,634) | $ (734,507) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Offering Costs [Member] | Comprehensive Income [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2014 | $ 134,938 | $ 13,345,362 | $ (1,792,182) | $ 71,265 | $ (1,297,039) | $ 10,462,344 | |
Subscription of common stock | 3,804 | 1,898,121 | 1,901,925 | ||||
Offering costs | (326,734) | (326,734) | |||||
Other comprehensive income (loss) | (80,426) | (80,426) | |||||
Net loss | (654,081) | (654,081) | |||||
Balance at Dec. 31, 2015 | 138,742 | 15,243,483 | (2,118,916) | (9,161) | (1,951,120) | 11,303,028 | |
Subscription of common stock | 6,124 | 3,056,386 | 3,062,510 | ||||
Purchase of common stock | $ (10,000) | (10,000) | |||||
Offering costs | (330,516) | (330,516) | |||||
Other comprehensive income (loss) | 62,862 | 62,862 | |||||
Net loss | (931,496) | (931,496) | |||||
Balance at Dec. 31, 2016 | $ 144,866 | $ 18,299,869 | $ (10,000) | $ (2,449,432) | $ 53,701 | $ (2,882,616) | $ 13,156,388 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Common Stock [Member] | ||
Per share | $ 5 | $ 5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | ||
Net loss | $ (931,496) | $ (654,081) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Accretion of discount on investments | (1,872) | (1,802) |
Bad debt expense | 28,054 | 0 |
Provision for depreciation | 1,962 | 2,052 |
Change in assets and liabilities: | ||
Advances and notes receivable | (24,788) | (345) |
Accounts payable | 12,496 | 748 |
Net cash used in operating activities | (915,644) | (653,428) |
Investing activities | ||
Purchases of furniture and equipment | (1,669) | (1,999) |
Net cash used in investing activities | (1,669) | (1,999) |
Financing activities | ||
Proceeds from public stock offering | 3,062,510 | 1,901,925 |
Offering costs | (330,516) | (326,734) |
Purchase of treasury stock | (10,000) | 0 |
Net cash provided by financing activities | 2,721,994 | 1,575,191 |
Increase in cash and cash equivalents | 1,804,681 | 919,764 |
Cash and cash equivalents, beginning of period | 8,975,991 | 8,056,227 |
Cash and cash equivalents, end of period | $ 10,780,672 | $ 8,975,991 |
1. Organization and Significant
1. Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. Organization and Significant Accounting Policies Nature of Operations Texas Republic Capital Corporation (the “Company”) is the parent holding company of Texas Republic Life Insurance Company (“TRLIC”). The Company was incorporated in Texas on May 15, 2012, for the primary purpose of forming and capitalizing a life insurance company subsidiary. The State of Texas Department of Insurance approved TRLIC’s charter on August 1, 2016. The Company capitalized TRLIC with $3,000,000 cash. The Company owns 100% of TRLIC. Since incorporation, the Company has been involved in the sale of common stock to provide working capital. The Company has completed an organizational offering and three private placement stock offerings. During 2014 the Company initiated an intrastate public stock offering in the state of Texas. The public stock offering intends to raise up to $25,000,000 by offering 5,000,000 shares of its common stock. The Company raised $10,336,500 and incurred $1,215,569 of offering costs through the issuance and subscription of 12,865,000 shares from an organizational offering and three private placement offerings. Through December 31, 2016, the Company has raised $8,108,235, purchased $10,000 of treasury stock and incurred $1,233,863 of offering costs through the issuance of 1,074,147 shares of common stock, subscriptions of 547,500 shares less treasury stock of 2,000 shares from the intrastate public stock offering. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principles of Consolidation The consolidated financial statements include the accounts and operations of the Company and its subsidiary. All intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Investments Fixed maturity securities are comprised of bonds that are classified as available-for-sale and are carried at fair value with unrealized gains and losses, net of applicable income taxes, reported in accumulated other comprehensive income. The amortized cost of fixed maturity securities available-for-sale is generally adjusted for amortization of premium and accretion of discount. Interest income, as well as the related amortization of premium and accretion of discount, is included in net investment income under the effective yield method. The amortized cost of fixed maturity securities available-for-sale is written down to fair value when a decline in value is considered to be other-than-temporary. The Company evaluates the difference between the cost or amortized cost and estimated fair value of its investments to determine whether any decline in value is other-than-temporary in nature. This determination involves a degree of uncertainty. If a decline in the fair value of a security is determined to be temporary, the decline is recorded as an unrealized loss in stockholders’ equity. If a decline in a security’s fair value is considered to be other-than-temporary, the Company then determines the proper treatment for the other-than-temporary impairment. For fixed maturity securities available-for-sale, the amount of any other-than-temporary impairment related to a credit loss is recognized in earnings and reflected as a reduction in the cost basis of the security; and the amount of any other-than-temporary impairment related to other factors is recognized in other comprehensive income (loss) with no change to the cost basis of the security. The assessment of whether a decline in fair value is considered temporary or other-than-temporary includes management’s judgment as to the financial position and future prospects of the entity issuing the security. It is not possible to accurately predict when it may be determined that a specific security will become impaired. Future adverse changes in market conditions, poor operating results of underlying investments and defaults on mortgage loan payments could result in losses or an inability to recover the current carrying value of the investments, thereby possibly requiring an impairment charge in the future. Likewise, if a change occurs in the Company’s intent to sell temporarily impaired securities prior to maturity or recovery in value, or if it becomes more likely than not that the Company will be required to sell such securities prior to recovery in value or maturity, a future impairment charge could result. If an other-than-temporary impairment related to a credit loss occurs with respect to a bond, the Company amortizes the reduced book value back to the security’s expected recovery value over the remaining term of the bond. The Company continues to review the security for further impairment that would prompt another write-down in the value. Purchases and sales of securities are recorded on a trade-date basis. Interest earned on investments is recorded on the accrual basis and is included in net investment income. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks and money market instruments. Advances and Notes Receivable Notes receivable are recorded at unpaid principal balances. Management evaluates the collectability of notes receivable on the specific identification basis. Uncollectible amounts are reported in the results of operations in the year the determination is made. Property and Equipment Property and equipment are carried at cost less accumulated depreciation or amortization. Office furniture, equipment and EDP equipment is recorded at cost or fair value at acquisition less accumulated depreciation or amortization using the straight-line method over the estimated useful life of the respective assets of three to seven years. Common Stock Common stock is fully paid, non-assessable and has a par value of $.01 per share. Treasury Stock Treasury stock, representing shares of the Company’s common stock that have been reacquired after having been issued and fully paid, is recorded at the reacquisition cost and the shares are no longer outstanding. Federal Income Taxes The Company uses the asset and liability method of accounting for income taxes. Deferred income taxes are provided for cumulative temporary differences between balances of assets and liabilities determined under GAAP and balances determined using tax bases. Offering Costs Certain costs directly related to the sale of the Company’s securities are capitalized against the proceeds from the sales. These costs include legal fees, recruiting and training expenses, commissions, printing, mailing and other expenses related to the offering. Net Loss Per Common Share Issued and Subscribed Net loss per common share is calculated using the weighted average number of common shares outstanding and subscribed during the year. Shares sold during the period are considered to be outstanding for one half of the month in which they were sold. The weighted average common shares outstanding and subscribed were 14,113,976 and 13,687,880 for the years ended December 31, 2016 and 2015, respectively. Related Party Transactions During 2015 the Company entered into an administrative service agreement with First Trinity Financial Corporation (“FTFC”) for accounting and other services incidental to the operations of the Company. The Company paid FTFC $54,668 and $13,550 in 2016 and 2015, respectively. The Chairman of the Company is also the Chairman, President and Chief Executive Officer of FTFC. Subsequent Events Management has evaluated subsequent events for recognition and disclosure in the financial statements through March 16, 2017, which is the date the financial statements were available to be issued. During the period of January 1, 2017 through March 16, 2017, the Company sold subscription of 277,200 shares for $1,386,000 in the current intrastate stock offering. This offering will conclude on March 31, 2017. There were no other significant events to be disclosed. Recent Accounting Pronouncements Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity’s ability to continue as a going concern and when an entity must disclose certain relevant conditions and events. The new guidance requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). The new guidance allows the entity to consider the mitigating effects of management’s plans that will alleviate the substantial doubt and requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans. If conditions or events raise substantial doubt that is not alleviated, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations and management’s plans that are intended to mitigate those conditions. The guidance is effective for annual periods ending after December 15, 2016, and interim and annual periods thereafter. The adoption of this guidance will not have a material effect on the Company’s results of operations, financial position or liquidity since there are no uncertainties about the Company’s ability to continue as a going concern. Leases In February 2016, the FASB issued updated guidance to require lessees to recognize a right-to-use asset and a lease liability for leases with terms of more than 12 months. The updated guidance retains the two classifications of a lease as either an operating or finance lease (previously referred to as a capital lease). Both lease classifications require the lessee to record the right-to-use asset and the lease liability based upon the present value of cash flows. Finance leases will reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-to-use asset. Operating leases will recognize lease expense (with no separate recognition of interest expense) on a straight-line basis over the term of the lease. The accounting by lessors is not significantly changed by the updated guidance. The updated guidance requires expanded qualitative and quantitative disclosures, including additional information about the amounts recorded in the financial statements. The updated guidance is effective for reporting periods beginning after December 15, 2018, and will require that the earliest comparative period presented include the measurement and recognition of existing leases with an adjustment to equity as if the updated guidance had always been applied. Early adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s results of operations, financial position or liquidity. |
2. Investments
2. Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments Schedule [Abstract] | |
Investment [Text Block] | 2. Investments Fixed Maturity Securities Available-For-Sale Investments in fixed maturity securities available-for-sale as of December 31, 2016 and 2015 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 2,286,379 $ 68,490 $ 14,789 $ 2,340,080 Total fixed maturity securities $ 2,286,379 $ 68,490 $ 14,789 $ 2,340,080 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2015 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 2,284,507 $ 45,579 $ 54,740 $ 2,275,346 Total fixed maturity securities $ 2,284,507 $ 45,579 $ 54,740 $ 2,275,346 For securities in an unrealized loss position as of the financial statement dates, the estimated fair value, pre-tax gross unrealized loss and number of securities by length of time that those securities have been continuously in an unrealized loss position as of December 31, 2016 and 2015 are summarized as follows: Unrealized Number of December 31, 2016 Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ 143,625 $ 4,872 1 Greater than 12 months Corporate bonds 192,103 9,917 2 Total fixed maturity securities $ 335,728 $ 14,789 3 Unrealized Number of December 31, 2015 Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ 479,829 $ 17,830 4 Greater than 12 months Corporate bonds 165,464 36,910 2 Total fixed maturity securities $ 645,293 $ 54,740 6 As of December 31, 2016 and 2015, all of the fixed maturity securities had a fair value to amortized cost ratio equal to or greater than 92% and 72%, respectively. Two fixed maturity securities with a par value of $250,000 are below investment grade as rated by Standard and Poor’s as of December 31, 2016. One fixed maturity security with a par value of $150,000 is below investment grade as rated by Standard and Poor’s as of December 31, 2015. The Company’s decision to record an impairment loss is primarily based on whether the security’s fair value is likely to remain significantly below its book value based on all of the factors considered. Factors that are considered include the length of time the security’s fair value has been below its carrying amount, the severity of the decline in value, the credit worthiness of the issuer and the coupon and/or dividend payment history of the issuer. The Company also assesses whether it intends to sell or whether it is more likely than not that it may be required to sell the security prior to its recovery in value. For any fixed maturity securities that are other-than-temporarily impaired, the Company determines the portion of the other-than-temporary impairment that is credit-related and the portion that is related to other factors. The credit-related portion is the difference between the expected future cash flows and the amortized cost basis of the fixed maturity security and that difference is charged to earnings. The non-credit-related portion representing the remaining difference to fair value is recognized in other comprehensive income (loss). Only in the case of a credit-related impairment where management has the intent to sell the security, or it is more likely than not that it will be required to sell the security before recovery of its cost basis, is a fixed maturity security adjusted to fair value and the resulting losses recognized in realized gains (losses) in the consolidated statements of operations. Any other-than-temporary impairments on equity securities are recorded in the consolidated statements of operations in the periods incurred as the difference between fair value and cost. Based on management’s review, the Company experienced no other-than-temporary impairments during the years ended December 31, 2016 and 2015. Management believes that the Company will fully recover its cost basis in the securities held as of December 31, 2016, and management does not have the intent to sell nor is it more likely than not that the Company will be required to sell such securities until they recover or mature. The temporary impairments shown herein are primarily the result of the current interest rate environment rather than credit factors that would imply other-than-temporary impairment. Net unrealized gains (losses) included in other comprehensive income (loss) for investments classified as available-for-sale are summarized as follows: December 31, 2016 December 31, 2015 Net unrealized appreciation (depreciation) on available-for-sale securities $ 53,701 $ (9,161 ) The amortized cost and fair value of fixed maturity available-for-sale securities as of December 31, 2016, by contractual maturity, are summarized as follows: Amortized Cost Fair Value Due after five years through ten years $ 2,286,379 $ 2,340,080 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Major categories of net investment income for the years ended December 31, 2016 and 2015 are summarized as follows: For the Years Ended December 31, 2016 2015 Fixed maturity securities $ 91,646 $ 91,577 Short-term and other investments 520 157 Net investment income $ 92,166 $ 91,734 |
3. Fair Value Measurements
3. Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 3. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) on the measurement date. The Company also considers the impact on fair value of a significant decrease in volume and level of activity for an asset or liability when compared with normal activity. The Company holds fixed maturity securities that are measured and reported at fair market value on the statement of financial position. The Company determines the fair market values of its financial instruments based on the fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value, as follows: Level 1 Level 2 Level 3 The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into the three-level fair value hierarchy. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the valuation inputs, or their ability to be observed, may result in a reclassification for certain financial assets or liabilities. Reclassifications impacting the levels of the fair value hierarchy are reported as transfers in and out of the specific level category as of the beginning of the period in which the reclassifications occur. The Company’s fair value hierarchy for those financial instruments measured at fair value on a recurring basis as of December 31, 2016 and 2015 are summarized as follows: December 31, 2016 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 2,340,080 $ - $ 2,340,080 Total fixed maturity securities $ - $ 2,340,080 $ - $ 2,340,080 December 31, 2015 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 2,275,346 $ - $ 2,275,346 Total fixed maturity securities $ - $ 2,275,346 $ - $ 2,275,346 Fair values for Level 2 assets for the Company’s fixed maturity securities available-for-sale are primarily based on prices supplied by a third party investment service. The third party investment service provides quoted prices in the market which use observable inputs in developing such rates. The Company analyzes market valuations received to verify reasonableness and to understand the key assumptions used and the sources. Since the fixed maturity securities owned by the Company do not trade on a daily basis, the third party investment service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing. As the fair value estimates of the Company’s fixed maturity securities are based on observable market information rather than market quotes, the estimates of fair value on these fixed maturity securities are included in Level 2 of the hierarchy. The Company’s Level 2 investments include corporate bonds. The Company’s fixed maturity securities available-for-sale portfolio is highly liquid and allows for a high percentage of the portfolio to be priced through pricing services. Fair Value of Financial Instruments The carrying amount and fair value of the Company’s financial assets disclosed, but not carried, at fair value as of December 31, 2016 and 2015 and the level within the fair value hierarchy at which such assets and liabilities are measured on a recurring basis are summarized as follows: Financial Instruments Disclosed, But Not Carried, at Fair Value: December 31, 2016 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 10,780,672 $ 10,780,672 $ 10,780,672 $ - $ - Accrued investment income 22,709 22,709 - - 22,709 Advances and notes receivable 35,775 35,775 - - 35,775 Total financial assets $ 10,839,156 $ 10,839,156 $ 10,780,672 $ - $ 58,484 December 31, 2015 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 8,975,991 $ 8,975,991 $ 8,975,991 $ - $ - Accrued investment income 22,709 22,709 - - 22,709 Advances and notes receivable 39,041 39,041 - - 39,041 Total financial assets $ 9,037,741 $ 9,037,741 $ 8,975,991 $ - $ 61,750 The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment was required to interpret market data to develop these estimates. Accordingly, the estimates are not necessarily indicative of the amounts which could be realized in a current market exchange. The use of different market assumptions or estimation methodologies may have a material effect on the fair value amounts. The following methods and assumptions were used in estimating the fair value disclosures for financial instruments in the accompanying financial statements and notes thereto: Fixed Maturity Securities The fair value of fixed maturity and equity securities are based on the principles previously discussed as Level 1, Level 2 and Level 3. Cash and Cash Equivalents, Accrued Investment Income and Advances and Notes Receivable The carrying value of these financial instruments approximates their fair values due to the expected short-term nature until the cash settlement of these items. Cash and cash equivalents are included in Level 1 of the fair value hierarchy due to their highly liquid nature. Accrued investment income and advances and notes receivable are included in Level 3 of the fair value hierarchy due to little or no availability of market activity for these types of assets. |
4. Property and Equipment
4. Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and Equipment Property and equipment as of December 31, 2016 and 2015 is summarized as follows: December 31, 2016 December 31, 2015 Total property and equipment $ 9,326 $ 7,657 Less - accumulated depreciation (4,822 ) (2,860 ) Property and equipment net of accumulated depreciation $ 4,504 $ 4,797 |
5. Income Taxes
5. Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 5. Income Taxes The Company files a federal income tax return but does not file a consolidated tax return with TRLIC. In 2016 TRLIC had no insurance sales or reserves, however TRLIC will begin insurance operations on April 3, 2017 and will taxed as a life insurance company under the provisions of the Internal Revenue Code. Life insurance companies must file separate tax returns until they have been a member of the consolidated filing group for five years. Certain items included in income reported for financial statement purposes are not included in taxable income for the current period, resulting in deferred income taxes. The Company has net operating loss carryforwards of approximately of $2.8 million expiring in 2032 through 2036. A valuation allowance of $937,013 has been established for the amount of net operating losses arising from 2012 through 2016 since the Company has not demonstrated the ability to generate taxable income. The utilization of those losses is restricted by the tax laws and some or all of the losses may not be available for use. The Company has no known uncertain tax benefits within its provision for income taxes. In addition, the Company does not believe it would be subject to any penalties or interest relative to any open tax years and, therefore, have not accrued any such amounts. The Company files U.S. federal income tax returns and income tax returns in various state jurisdictions. The 2013 through 2016 U.S. federal tax years are subject to income tax examination by tax authorities. The Company classifies any interest and penalties (if applicable) as income tax expense in the financial statements. The Company’s subsidiary TRLIC files a separate federal return. At August 1, 2016, TRLIC received it’s Certificate of Authority from the Texas department of insurance. TRLIC has a net operating loss of approximately $0.01 million. |
6. Concentrations of Credit Ris
6. Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 6. Concentrations of Credit Risk The Company maintains cash and cash equivalents at multiple institutions. The Federal Deposit Insurance Corporation insures non-interest bearing accounts up to $250,000. Uninsured balances aggregate $8,754,470 as of December 31, 2016. The Company monitors the solvency of all financial institutions in which it has funds to minimize the exposure for loss. The Company has not experienced any losses in this account and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
7. Lease Commitment
7. Lease Commitment | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Commitments Disclosure [Text Block] | 7. Lease Commitment The Company entered into a lease with a third party lessor in 2014 for utilization of office space in Austin, Texas. The lease agreement was for the period May 1, 2014 through May 31, 2017. The lease required a deposit in the amount of $3,992 and also abated the first month’s rent. The monthly rental payments are $2,432 for the first twelve months with annual increases of approximately 3% thereafter and the Company also pays a pro rata share of the operating expenses of the building. Rent expense under the lease agreement was $50,583 and $45,502 for the years ended December 31, 2016 and 2015, respectively. Future minimum lease payments and a pro rata share of the buildings operating expenses to be paid under non-cancellable lease agreements are $21,533 in 2017. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts and operations of the Company and its subsidiary. All intercompany accounts and transactions are eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. |
Investment, Policy [Policy Text Block] | Investments Fixed maturity securities are comprised of bonds that are classified as available-for-sale and are carried at fair value with unrealized gains and losses, net of applicable income taxes, reported in accumulated other comprehensive income. The amortized cost of fixed maturity securities available-for-sale is generally adjusted for amortization of premium and accretion of discount. Interest income, as well as the related amortization of premium and accretion of discount, is included in net investment income under the effective yield method. The amortized cost of fixed maturity securities available-for-sale is written down to fair value when a decline in value is considered to be other-than-temporary. The Company evaluates the difference between the cost or amortized cost and estimated fair value of its investments to determine whether any decline in value is other-than-temporary in nature. This determination involves a degree of uncertainty. If a decline in the fair value of a security is determined to be temporary, the decline is recorded as an unrealized loss in stockholders’ equity. If a decline in a security’s fair value is considered to be other-than-temporary, the Company then determines the proper treatment for the other-than-temporary impairment. For fixed maturity securities available-for-sale, the amount of any other-than-temporary impairment related to a credit loss is recognized in earnings and reflected as a reduction in the cost basis of the security; and the amount of any other-than-temporary impairment related to other factors is recognized in other comprehensive income (loss) with no change to the cost basis of the security. The assessment of whether a decline in fair value is considered temporary or other-than-temporary includes management’s judgment as to the financial position and future prospects of the entity issuing the security. It is not possible to accurately predict when it may be determined that a specific security will become impaired. Future adverse changes in market conditions, poor operating results of underlying investments and defaults on mortgage loan payments could result in losses or an inability to recover the current carrying value of the investments, thereby possibly requiring an impairment charge in the future. Likewise, if a change occurs in the Company’s intent to sell temporarily impaired securities prior to maturity or recovery in value, or if it becomes more likely than not that the Company will be required to sell such securities prior to recovery in value or maturity, a future impairment charge could result. If an other-than-temporary impairment related to a credit loss occurs with respect to a bond, the Company amortizes the reduced book value back to the security’s expected recovery value over the remaining term of the bond. The Company continues to review the security for further impairment that would prompt another write-down in the value. Purchases and sales of securities are recorded on a trade-date basis. Interest earned on investments is recorded on the accrual basis and is included in net investment income. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks and money market instruments. |
Receivables, Policy [Policy Text Block] | Advances and Notes Receivable Notes receivable are recorded at unpaid principal balances. Management evaluates the collectability of notes receivable on the specific identification basis. Uncollectible amounts are reported in the results of operations in the year the determination is made. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are carried at cost less accumulated depreciation or amortization. Office furniture, equipment and EDP equipment is recorded at cost or fair value at acquisition less accumulated depreciation or amortization using the straight-line method over the estimated useful life of the respective assets of three to seven years. |
Stockholders' Equity, Policy [Policy Text Block] | Common Stock Common stock is fully paid, non-assessable and has a par value of $.01 per share. |
Treasure Stock [Policy Text Block] | Treasury Stock Treasury stock, representing shares of the Company’s common stock that have been reacquired after having been issued and fully paid, is recorded at the reacquisition cost and the shares are no longer outstanding. |
Income Tax, Policy [Policy Text Block] | Federal Income Taxes The Company uses the asset and liability method of accounting for income taxes. Deferred income taxes are provided for cumulative temporary differences between balances of assets and liabilities determined under GAAP and balances determined using tax bases. |
Deferred Charges, Policy [Policy Text Block] | Offering Costs Certain costs directly related to the sale of the Company’s securities are capitalized against the proceeds from the sales. These costs include legal fees, recruiting and training expenses, commissions, printing, mailing and other expenses related to the offering. |
Earnings Per Share, Policy [Policy Text Block] | Net Loss Per Common Share Issued and Subscribed Net loss per common share is calculated using the weighted average number of common shares outstanding and subscribed during the year. Shares sold during the period are considered to be outstanding for one half of the month in which they were sold. The weighted average common shares outstanding and subscribed were 14,113,976 and 13,687,880 for the years ended December 31, 2016 and 2015, respectively. |
Realted Party Transactions, Policy [Policy Text Block] | Related Party Transactions During 2015 the Company entered into an administrative service agreement with First Trinity Financial Corporation (“FTFC”) for accounting and other services incidental to the operations of the Company. The Company paid FTFC $54,668 and $13,550 in 2016 and 2015, respectively. The Chairman of the Company is also the Chairman, President and Chief Executive Officer of FTFC. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events Management has evaluated subsequent events for recognition and disclosure in the financial statements through March 16, 2017, which is the date the financial statements were available to be issued. During the period of January 1, 2017 through March 16, 2017, the Company sold subscription of 277,200 shares for $1,386,000 in the current intrastate stock offering. This offering will conclude on March 31, 2017. There were no other significant events to be disclosed. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity’s ability to continue as a going concern and when an entity must disclose certain relevant conditions and events. The new guidance requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). The new guidance allows the entity to consider the mitigating effects of management’s plans that will alleviate the substantial doubt and requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans. If conditions or events raise substantial doubt that is not alleviated, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations and management’s plans that are intended to mitigate those conditions. The guidance is effective for annual periods ending after December 15, 2016, and interim and annual periods thereafter. The adoption of this guidance will not have a material effect on the Company’s results of operations, financial position or liquidity since there are no uncertainties about the Company’s ability to continue as a going concern. Leases In February 2016, the FASB issued updated guidance to require lessees to recognize a right-to-use asset and a lease liability for leases with terms of more than 12 months. The updated guidance retains the two classifications of a lease as either an operating or finance lease (previously referred to as a capital lease). Both lease classifications require the lessee to record the right-to-use asset and the lease liability based upon the present value of cash flows. Finance leases will reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-to-use asset. Operating leases will recognize lease expense (with no separate recognition of interest expense) on a straight-line basis over the term of the lease. The accounting by lessors is not significantly changed by the updated guidance. The updated guidance requires expanded qualitative and quantitative disclosures, including additional information about the amounts recorded in the financial statements. The updated guidance is effective for reporting periods beginning after December 15, 2018, and will require that the earliest comparative period presented include the measurement and recognition of existing leases with an adjustment to equity as if the updated guidance had always been applied. Early adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s results of operations, financial position or liquidity. |
2. Investments (Tables)
2. Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments Schedule [Abstract] | |
Available-for-sale Securities [Table Text Block] | Investments in fixed maturity securities available-for-sale as of December 31, 2016 and 2015 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 2,286,379 $ 68,490 $ 14,789 $ 2,340,080 Total fixed maturity securities $ 2,286,379 $ 68,490 $ 14,789 $ 2,340,080 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2015 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 2,284,507 $ 45,579 $ 54,740 $ 2,275,346 Total fixed maturity securities $ 2,284,507 $ 45,579 $ 54,740 $ 2,275,346 |
Schedule of Unrealized Loss on Investments [Table Text Block] | For securities in an unrealized loss position as of the financial statement dates, the estimated fair value, pre-tax gross unrealized loss and number of securities by length of time that those securities have been continuously in an unrealized loss position as of December 31, 2016 and 2015 are summarized as follows: Unrealized Number of December 31, 2016 Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ 143,625 $ 4,872 1 Greater than 12 months Corporate bonds 192,103 9,917 2 Total fixed maturity securities $ 335,728 $ 14,789 3 Unrealized Number of December 31, 2015 Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ 479,829 $ 17,830 4 Greater than 12 months Corporate bonds 165,464 36,910 2 Total fixed maturity securities $ 645,293 $ 54,740 6 |
Unrealized Gain (Loss) on Investments [Table Text Block] | Net unrealized gains (losses) included in other comprehensive income (loss) for investments classified as available-for-sale are summarized as follows: December 31, 2016 December 31, 2015 Net unrealized appreciation (depreciation) on available-for-sale securities $ 53,701 $ (9,161 ) |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of fixed maturity available-for-sale securities as of December 31, 2016, by contractual maturity, are summarized as follows: Amortized Cost Fair Value Due after five years through ten years $ 2,286,379 $ 2,340,080 |
Investment Income [Table Text Block] | Major categories of net investment income for the years ended December 31, 2016 and 2015 are summarized as follows: For the Years Ended December 31, 2016 2015 Fixed maturity securities $ 91,646 $ 91,577 Short-term and other investments 520 157 Net investment income $ 92,166 $ 91,734 |
3. Fair Value Measurements (Tab
3. Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The Company’s fair value hierarchy for those financial instruments measured at fair value on a recurring basis as of December 31, 2016 and 2015 are summarized as follows: December 31, 2016 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 2,340,080 $ - $ 2,340,080 Total fixed maturity securities $ - $ 2,340,080 $ - $ 2,340,080 December 31, 2015 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 2,275,346 $ - $ 2,275,346 Total fixed maturity securities $ - $ 2,275,346 $ - $ 2,275,346 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Financial Instruments Disclosed, But Not Carried, at Fair Value: December 31, 2016 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 10,780,672 $ 10,780,672 $ 10,780,672 $ - $ - Accrued investment income 22,709 22,709 - - 22,709 Advances and notes receivable 35,775 35,775 - - 35,775 Total financial assets $ 10,839,156 $ 10,839,156 $ 10,780,672 $ - $ 58,484 December 31, 2015 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 8,975,991 $ 8,975,991 $ 8,975,991 $ - $ - Accrued investment income 22,709 22,709 - - 22,709 Advances and notes receivable 39,041 39,041 - - 39,041 Total financial assets $ 9,037,741 $ 9,037,741 $ 8,975,991 $ - $ 61,750 |
4. Property and Equipment (Tabl
4. Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment as of December 31, 2016 and 2015 is summarized as follows: December 31, 2016 December 31, 2015 Total property and equipment $ 9,326 $ 7,657 Less - accumulated depreciation (4,822 ) (2,860 ) Property and equipment net of accumulated depreciation $ 4,504 $ 4,797 |
1. Organization and Significa20
1. Organization and Significant Accounting Policies (Details) | Aug. 01, 2016USD ($) | Mar. 16, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2016USD ($)shares |
1. Organization and Significant Accounting Policies (Details) [Line Items] | |||||
Public Stock Offering, Maximum | $ 25,000,000 | ||||
Proceeds from Issuance or Sale of Equity | $ 3,062,510 | $ 1,901,925 | |||
Payments of Stock Issuance Costs | 330,516 | 326,734 | |||
Payments for Repurchase of Common Stock | $ 10,000 | $ 0 | |||
Common Stock, Shares Subscribed but Unissued (in Shares) | shares | 547,500 | 1,009,145 | 547,500 | ||
Treasury Stock, Shares (in Shares) | shares | 2,000 | 2,000 | |||
Weighted Average Number of Shares Outstanding, Basic (in Shares) | shares | 14,113,976 | 13,687,880 | |||
Costs and Expenses, Related Party | $ 54,668 | $ 13,550 | |||
Private Placement [Member] | |||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | |||||
Number of Private Placement Stock Offerings | 3 | ||||
Proceeds from Issuance or Sale of Equity | $ 10,336,500 | ||||
Payments of Stock Issuance Costs | $ 1,215,569 | ||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 12,865,000 | ||||
Intrastate Public Offering [Member] | |||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | |||||
Proceeds from Issuance or Sale of Equity | $ 8,108,235 | ||||
Payments of Stock Issuance Costs | $ 1,233,863 | ||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 1,074,147 | ||||
Payments for Repurchase of Common Stock | $ 10,000 | ||||
Texas Republic Life Insurance Company [Member] | |||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 3,000,000 | ||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||
Common Class A [Member] | |||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | |||||
Public Stock Offering, Shares (in Shares) | shares | 5,000,000 | ||||
Subsequent Event [Member] | |||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | |||||
Proceeds from Issuance or Sale of Equity | $ 1,386,000 | ||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 277,200 | ||||
Minimum [Member] | |||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Maximum [Member] | |||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 7 years |
2. Investments (Details)
2. Investments (Details) - Corporate Bond Securities [Member] - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
2. Investments (Details) [Line Items] | ||
Number of Investments Below Investment Grade | 2 | 1 |
Fixed Maturity Securities Below Investment Grade, Par Value (in Dollars) | $ 250,000 | $ 150,000 |
Minimum [Member] | ||
2. Investments (Details) [Line Items] | ||
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 92.00% | 72.00% |
2. Investments (Detai
2. Investments (Details) - Schedule of Available-for-Sale Securities - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed maturity securities | ||
Fixed Maturity Securities, Amortized Cost | $ 2,286,379 | $ 2,284,507 |
Fixed Maturity Securities, Gross Unrealized Gains | 68,490 | 45,579 |
Fixed Maturity Securities, Gross Unrealized Losses | 14,789 | 54,740 |
Fixed Maturity Securities, Fair Value | 2,340,080 | 2,275,346 |
Corporate Bond Securities [Member] | ||
Fixed maturity securities | ||
Fixed Maturity Securities, Amortized Cost | 2,286,379 | 2,284,507 |
Fixed Maturity Securities, Gross Unrealized Gains | 68,490 | 45,579 |
Fixed Maturity Securities, Gross Unrealized Losses | 14,789 | 54,740 |
Fixed Maturity Securities, Fair Value | $ 2,340,080 | $ 2,275,346 |
2. Investments (Det23
2. Investments (Details) - Schedule of Unrealized Loss on Investments | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Greater than 12 months | ||
Total fixed maturity securities, fair value | $ 335,728 | $ 645,293 |
Total fixed maturity securities, unrealized loss | $ 14,789 | $ 54,740 |
Total fixed maturity securities, number of securities | 3 | 6 |
Corporate Bond Securities [Member] | ||
Less than 12 months | ||
Fixed maturity securities less than 12 months, fair value | $ 143,625 | $ 479,829 |
Fixed maturity securities less than 12 months, unrealized loss | $ 4,872 | $ 17,830 |
Fixed maturity securities less than 12 months, number of securities | 1 | 4 |
Greater than 12 months | ||
Fixed maturity securities greater than 12 months, fair value | $ 192,103 | $ 165,464 |
Fixed maturity securities greater than 12 months, unrealized loss | $ 9,917 | $ 36,910 |
Fixed maturity securities greater than 12 months, number of securities | 2 | 2 |
2. Investments (Det24
2. Investments (Details) - Unrealized Gain (Loss) on Investments - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Unrealized Gain (Loss) on Investments [Abstract] | ||
Net unrealized appreciation (depreciation) on available-for-sale securities | $ 53,701 | $ (9,161) |
2. Investments (Det25
2. Investments (Details) - Investments Classified by Contractual Maturity Date | Dec. 31, 2016USD ($) |
Investments Classified by Contractual Maturity Date [Abstract] | |
Due after five years through ten years | $ 2,286,379 |
Due after five years through ten years | $ 2,340,080 |
2. Investments (Det26
2. Investments (Details) - Investment Income - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | ||
Net investment income | $ 92,166 | $ 91,734 |
Corporate Bond Securities [Member] | ||
Net Investment Income [Line Items] | ||
Net investment income | 91,646 | 91,577 |
Short-term Investments [Member] | ||
Net Investment Income [Line Items] | ||
Net investment income | $ 520 | $ 157 |
3. Fair Value Measure
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis - Corporate Debt Securities [Member] - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fixed maturity securities, available-for-sale | ||
Fixed Maturity Securities | $ 2,340,080 | $ 2,275,346 |
Fair Value, Inputs, Level 1 [Member] | ||
Fixed maturity securities, available-for-sale | ||
Fixed Maturity Securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fixed maturity securities, available-for-sale | ||
Fixed Maturity Securities | 2,340,080 | 2,275,346 |
Fair Value, Inputs, Level 3 [Member] | ||
Fixed maturity securities, available-for-sale | ||
Fixed Maturity Securities | $ 0 | $ 0 |
3. Fair Value Measu28
3. Fair Value Measurements (Details) - Fair Value, by Balance Sheet Grouping - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets | |||
Cash and cash equivalents | $ 10,780,672 | $ 8,975,991 | $ 8,056,227 |
Cash and cash equivalents | 10,780,672 | 8,975,991 | |
Accrued investment income | 22,709 | 22,709 | |
Accrued investment income | 22,709 | 22,709 | |
Notes receivable | 35,775 | 39,041 | |
Notes receivable | 35,775 | 39,041 | |
Total financial assets | 10,839,156 | 9,037,741 | |
Total financial assets | 10,839,156 | 9,037,741 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets | |||
Cash and cash equivalents | 10,780,672 | 8,975,991 | |
Accrued investment income | 0 | 0 | |
Notes receivable | 0 | 0 | |
Total financial assets | 10,780,672 | 8,975,991 | |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets | |||
Cash and cash equivalents | 0 | 0 | |
Accrued investment income | 0 | 0 | |
Notes receivable | 0 | 0 | |
Total financial assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets | |||
Cash and cash equivalents | 0 | 0 | |
Accrued investment income | 22,709 | 22,709 | |
Notes receivable | 35,775 | 39,041 | |
Total financial assets | $ 58,484 | $ 61,750 |
4. Property and Equip
4. Property and Equipment (Details) - Schedule of Property, Plant and Equipment - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Property, Plant and Equipment [Abstract] | ||
Total property and equipment | $ 9,326 | $ 7,657 |
Less - accumulated depreciation | (4,822) | (2,860) |
Property and equipment net of accumulated depreciation | $ 4,504 | $ 4,797 |
5. Income Taxes (Details)
5. Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
5. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards | $ 2,800,000 | |
Deferred Tax Assets, Valuation Allowance | 937,013 | |
Net Income (Loss) Attributable to Parent | (931,496) | $ (654,081) |
Texas Republic Life Insurance Company [Member] | ||
5. Income Taxes (Details) [Line Items] | ||
Net Income (Loss) Attributable to Parent | $ 10,000 | |
Minimum [Member] | ||
5. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards, Expiration Date 1 | 2,032 | |
Maximum [Member] | ||
5. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards, Expiration Date 1 | 2,036 |
6. Concentrations of Credit R31
6. Concentrations of Credit Risk (Details) | Dec. 31, 2016USD ($) |
Risks and Uncertainties [Abstract] | |
Cash, FDIC Insured Amount | $ 250,000 |
Cash, Uninsured Amount | $ 8,754,470 |
7. Lease Commitment (Details)
7. Lease Commitment (Details) - USD ($) | May 01, 2014 | Dec. 31, 2016 | Dec. 31, 2015 |
7. Lease Commitment (Details) [Line Items] | |||
Security Deposit | $ 3,992 | $ 3,992 | |
Operating Leases, Rent Expense | 50,583 | $ 45,502 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 21,533 | ||
Austin, Texas [Member] | |||
7. Lease Commitment (Details) [Line Items] | |||
Lease Expiration Date | May 31, 2017 | ||
Security Deposit | $ 3,992 | ||
Operating Leases, Rent Expense, Minimum Rentals | $ 2,432 | ||
Description of Lessee Leasing Arrangements, Operating Leases | annual increases of approximately 3% thereafter and the Company also pays a pro rata share of the operating expenses of the building |