Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 13, 2018 | Jun. 30, 2017 | |
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 | 14,864,097 | ||
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, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Available-for-sale fixed maturity securities at fair value (Amortized cost: $2,288,321 and $2,286,379 as of December 31, 2017 and 2016, respectively) | $ 2,374,588 | $ 2,340,080 |
Cash and cash equivalents | 12,578,650 | 10,780,672 |
Accrued investment income | 22,709 | 22,709 |
Deferred policy acquisition costs | 193,585 | 0 |
Deferred sales inducement costs | 79,866 | 0 |
Advances and notes receivable | 24,850 | 35,775 |
Security deposit | 7,109 | 3,992 |
Prepaid and other assets | 29,381 | 0 |
Furniture and equipment, net | 33,230 | 4,504 |
Total assets | 15,343,968 | 13,187,732 |
Liabilities and Shareholders’ Equity | ||
Policyholders’ account balances | 1,487,763 | 0 |
Future policy benefits | 175,023 | 0 |
Policy claims and other benefits | 2,504 | 0 |
Other policyholder liabilities | 83,201 | 0 |
Total policy liabilities | 1,748,491 | 0 |
Accounts payable | 55,120 | 31,344 |
Total liabilities | 1,803,611 | 31,344 |
Shareholders’ equity | ||
Common stock, par value $.01 per share, 25,000,000 shares authorized, 14,867,097 and 13,939,147 issued as of December 31, 2017 and 2016, respectively, 14,864,097 and 13,937,147 outstanding as of December 31, 2017 and 2016, respectively and 547,500 subscribed as of December 31, 2016 | 148,671 | 144,866 |
Additional paid-in capital | 20,198,314 | 18,299,869 |
Treasury stock, at cost (3,000 and 2,000 shares as of December 31, 2017 and 2016, respectively) | (15,000) | (10,000) |
Offering costs | (2,659,696) | (2,449,432) |
Accumulated other comprehensive income | 86,267 | 53,701 |
Accumulated deficit | (4,218,199) | (2,882,616) |
Total shareholders’ equity | 13,540,357 | 13,156,388 |
Total liabilities and shareholders’ equity | $ 15,343,968 | $ 13,187,732 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Position (Parentheticals) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale fixed maturity securities Amortized cost (in Dollars) | $ 2,288,321 | $ 2,286,379 |
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 | 14,867,097 | 13,939,147 |
Common stock, shares outstanding | 14,864,097 | 13,937,147 |
Common stock, shares subscribed | 547,500 | |
Treasury stock, shares | 3,000 | 2,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | ||
Premiums and other considerations | $ 304,163 | $ 0 |
Net investment income | 96,678 | 91,888 |
Commission income | 372 | 0 |
Total revenues | 401,213 | 91,888 |
Benefits, claims and expenses | ||
Increase in future policy benefits | 174,665 | 0 |
Death and other benefits | 2,504 | 0 |
Interest credited to policyholders | 9,856 | 0 |
Total benefits and claims | 187,025 | 0 |
Policy acquisition costs deferred | (193,585) | 0 |
Commissions | 224,218 | 0 |
Salaries and wages | 669,433 | 510,598 |
Employee benefits | 80,482 | 62,335 |
Taxes, licenses and fees | 50,509 | 35,632 |
Office rent | 56,946 | 50,583 |
Director fees | 51,250 | 34,218 |
Third-party administration fees | 194,605 | 109,668 |
Service and transfer agent fees | 32,515 | 17,264 |
Travel, meals and entertainment | 98,006 | 27,924 |
Professional fees | 159,337 | 98,773 |
Furniture, equipment and software | 21,792 | 4,557 |
Bad debt | 0 | 28,054 |
Office and other expenses | 104,263 | 43,778 |
Total benefits, claims and expenses | 1,736,796 | 1,023,384 |
Net loss | $ (1,335,583) | $ (931,496) |
Net loss per common share outstanding and subscribed (in Dollars per share) | $ (0.09) | $ (0.07) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net loss | $ (1,335,583) | $ (931,496) |
Other comprehensive income | ||
Total net unrealized gains arising during the period | 32,566 | 62,862 |
Total other comprehensive income | 32,566 | 62,862 |
Total comprehensive loss | $ (1,303,017) | $ (868,634) |
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, 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 |
Subscription of common stock | 3,805 | 1,898,445 | 1,902,250 | ||||
Purchase of common stock | (5,000) | (5,000) | |||||
Offering costs | (210,264) | (210,264) | |||||
Other comprehensive income (loss) | 32,566 | 32,566 | |||||
Net loss | (1,335,583) | (1,335,583) | |||||
Balance at Dec. 31, 2017 | $ 148,671 | $ 20,198,314 | $ (15,000) | $ (2,659,696) | $ 86,267 | $ (4,218,199) | $ 13,540,357 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Common Stock [Member] | ||
Per share | $ 5 | $ 5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | ||
Net loss | $ (1,335,583) | $ (931,496) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Accretion of discount on investments | (1,942) | (1,872) |
Bad debt | 0 | 28,054 |
Provision for depreciation | 4,240 | 1,962 |
Policy acquisition costs deferred | (193,585) | 0 |
Interest credited to policyholders | 9,856 | 0 |
Change in assets and liabilities: | ||
Advances and notes receivable | 10,925 | (24,788) |
Security deposit | (3,117) | 0 |
Prepaid and other assets | (29,381) | 0 |
Future policy benefits | 175,023 | 0 |
Policy claims | 2,504 | 0 |
Other policy liabilities | 83,201 | 0 |
Accounts payable | 23,776 | 12,496 |
Net cash used in operating activities | (1,254,083) | (915,644) |
Investing activities | ||
Purchases of furniture and equipment | (32,966) | (1,669) |
Net cash used in investing activities | (32,966) | (1,669) |
Financing activities | ||
Proceeds from public stock offering | 1,902,250 | 3,062,510 |
Offering costs | (210,264) | (330,516) |
Purchase of treasury stock | (5,000) | (10,000) |
Policyholder deposits | 1,398,041 | 0 |
Net cash provided by financing activities | 3,085,027 | 2,721,994 |
Increase in cash and cash equivalents | 1,797,978 | 1,804,681 |
Cash and cash equivalents, beginning of period | 10,780,672 | 8,975,991 |
Cash and cash equivalents, end of period | $ 12,578,650 | $ 10,780,672 |
1. Organization and Significant
1. Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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”) and Texas Republic Life Solutions, Inc. (“TRLS”). The Company was incorporated in Texas on May 15, 2012, for the primary purpose of forming and capitalizing a life insurance company subsidiary. The Texas Department of Insurance approved TRLIC’s life insurance charter on August 1, 2016. The Company capitalized TRLIC with $3,000,000 and owns 100% of TRLIC. TRLIC began insurance operations on April 3, 2017 and is currently selling life and annuity products in the state of Texas. TRLS, an insurance agency, was incorporated February 1, 2017. The Company capitalized TRLS with $50,000 and owns 100% of TRLS. From incorporation through April 2, 2017, the Company was involved in the sale of common stock to provide working capital. During this time the Company completed an organizational offering, three private placement stock offerings and an intrastate public stock offering in the state of Texas. The Company raised $10,336,500 and incurred $1,215,569 of offering costs through the issuance of 12,865,000 shares from the organizational offering and three private placement offerings. The intrastate public stock offering was registered to raise $25,000,000 by offering 5,000,000 shares of its common stock and was ended on April 2, 2017. This offering raised $10,010,485 and incurred $1,444,127 of offering costs through the sale of 2,002,097 shares of the common stock. 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 subsidiaries. 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. Reclassifications Certain reclassifications have been made in the prior year financial statements to conform to current year classifications. These reclassifications had no effect on the previously reported net loss or shareholders equity. 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. Deferred Policy Acquisition Costs Costs that relate to and vary with the successful production of new business are deferred over the life of the policy. Deferred acquisition costs, (DAC), consist of commissions and policy issuance, underwriting and agency expenses. DAC expenses are amortized primarily over the premium-paying period of the policies, using the same assumptions as were used in computing liabilities for future policy benefits. Deferred Sales Inducement Costs Sales inducement costs (SIC) are related to policy bonuses issued on some of the Company’s annuity products. SIC is deferred at the issuance of the policy and amortized over the shorter of the bonus period or the life of the policy based on the expected future profits of the business. The amount deferred is based on the difference between the fund value with the bonus and the fund value without the bonus. There was $79,866 of SIC deferred at December 31, 2017 and no SIC amortized at December 31, 2017. There was no SIC deferred or amortized during 2016. Advances and Notes Receivable Advances and notes receivable are recorded at unpaid principal balances. Management evaluates the collectability of advances and notes receivable on the specific identification basis. Uncollectible amounts are reported in the results of operations in the year the determination is made. Furniture and Equipment Furniture 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. Policyholders’ Account Balances The Company’s liability for policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the financial statement date. This liability is generally equal to the accumulated account deposits plus applicable bonus and interest credited less policyholders’ withdrawals and other charges assessed against the account balance. Interest crediting rates for individual annuities range from 2.65% to 4.50%. Future Policy Benefits Future policy benefit reserves have been computed by the net level premium method with assumptions as to investment yields, mortality and withdrawals based upon the Company’s experience. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of policy liabilities and the increase in future policy benefit reserves. Management’s judgments and estimates for future policy benefit reserves provide for possible unfavorable deviation. 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, are recorded at cost. 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 Outstanding 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 14,804,853 and 14,113,976 for the years ended December 31, 2017 and 2016, 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 and paid FTFC $11,963 and $33,000 for the year ended December 31, 2017 and 2016, respectively related to this agreement. The Company also paid FTFC $8,320 and $21,668 for the year ended December 31, 2017 and 2016, respectively for additional services performed outside of the administrative service agreement. The Chairman of the Company is also the Chairman, President and Chief Executive Officer of FTFC. The administrative service agreement with FTFC was terminated effective April 30, 2017. Subsequent Events Management has evaluated subsequent events for recognition and disclosure in the financial statements through the date the financial statements were available to be issued. In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements — Going Concern” (“ASU 2014-15”). ASU 2014-15 requires management to evaluate an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management must evaluate whether conditions and events raise substantial doubt about an entity’s ability to continue as a going concern and then whether its plans alleviate that doubt. ASU 2014-15 was effective for annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Management has performed and continues to perform such required evaluation and has concluded there were no such conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. In March 2016, the FASB issued ASU 2016-07 “Investments—Equity Method and Joint Ventures (Topic 323), In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions. It requires excess tax benefits from share-based awards be reported as operating activities in the consolidated statement of cash flows. Previously, these cash flows were included in financing activities. ASU 2016-09 was effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods and did not have a significant impact on the Company’s financial statements as the Company does not have a stock compensation plan. Pronouncements to be effective in the future In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows, including, but not limited to: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions and (8) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective, with retrospective adoption, for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. The Company has evaluated the impact of this guidance which will not have any material impact on the Company’s financial condition or results of operations from the adoption of this guidance. In March 2017, the FASB issued ASU 2017-08 , “ Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities ” (“ASU 2017-08”). ASU 2017-08 revises the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted. The Company is evaluating the securities the Company owns which were purchased at a premium. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – “Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 provides guidance to improve certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Specifically, the guidance: (1) Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. (2) Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. (3) Eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities. (4) Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. (5) Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. (6) Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. (7) Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. (8) Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods and will not have a significant impact on the Company’s financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that fiscal year, with early adoption permitted. ASU 2016-02 requires the application of a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. While the Company is currently evaluating ASU 2016-02, the Company does not expect a material impact on the Company’s financial condition or results of operations from the adoption of this guidance. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses” (“ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity debt securities, trade receivables, and reinsurance recoverable. ASU 2016-13 requires a valuation allowance to be calculated on these financial assets and that they be presented on the financial statements net of the valuation allowance. This methodology is referred to as the current expected credit loss model. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of this guidance on the Company’s financial condition and results of operations. However, currently the Company does not expect a material impact on the Company’s financial condition or results of operations from the adoption of this guidance. In January 2017, the FASB issued ASU 2017-04, “Intangibles — Goodwill and Other” (“ASU 2017-04”). ASU 2017-04 will amend and simplify current goodwill impairment testing to eliminate Step 2 from the current provisions. Under the new guidance, an entity should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity still has the option to perform the quantitative assessment for a reporting unit to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. As the Company currently has no Goodwill on its balance sheet ASU 2017-04 In February 2018, the FASB issued ASU 2018-02, “Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). ASU 2018-02 was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the Tax Cuts and Jobs Act on December 22, 2017 that changed the Company’s income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is evaluating the effects of the enactment of the Tax Cuts and Jobs Act and ASU 2018-02, but does not expect a material impact on the Company’s financial condition or results of operations from the adoption of this guidance. |
2. Investments
2. Investments | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 2,288,321 $ 93,942 $ 7,675 $ 2,374,588 Total fixed maturity securities $ 2,288,321 $ 93,942 $ 7,675 $ 2,374,588 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 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, 2017 and 2016 are summarized as follows: Unrealized Number of December 31, 2017 Fair Value Loss Securities Fixed maturity securities Greater than 12 months Corporate bonds $ 94,250 $ 7,675 1 Total fixed maturity securities $ 94,250 $ 7,675 1 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 As of December 31, 2017, and 2016, all the fixed maturity securities had a fair value to amortized cost ratio equal to or greater than 92%. 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, 2017 and 2016. 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, 2017 and 2016. Management believes that the Company will fully recover its cost basis in the securities held as of December 31, 2017, 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 included in other comprehensive income (loss) for investments classified as available-for-sale are summarized as follows: December 31, 2017 December 31, 2016 Net unrealized appreciation on available-for-sale securities $ 86,267 $ 53,701 The amortized cost and fair value of fixed maturity available-for-sale securities as of December 31, 2017, by contractual maturity, are summarized as follows: Amortized Cost Fair Value Due after one year through five years $ 201,243 $ 197,416 Due after five years through ten years 2,087,078 2,177,172 Total all durations $ 2,288,321 $ 2,374,588 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, 2017 and 2016 are summarized as follows: For the Years Ended December 31, 2017 2016 Fixed maturity securities $ 91,828 $ 91,368 Short-term and other investments 4,850 520 Net investment income $ 96,678 $ 91,888 |
3. Fair Value Measurements
3. Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 are summarized as follows: December 31, 2017 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 2,374,588 $ - $ 2,374,588 Total fixed maturity securities $ - $ 2,374,588 $ - $ 2,374,588 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 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 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, 2017 and 2016 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, 2017 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 12,578,650 $ 12,578,650 $ 12,578,650 $ - $ - Accrued investment income 22,709 22,709 - - 22,709 Advances and notes receivable 24,850 24,850 - - 24,850 Total financial assets $ 12,626,209 $ 12,626,209 $ 12,578,650 $ - $ 47,559 Financial liabilities Policyholders’ account balances $ 1,487,763 $ 1,155,525 $ - $ - $ 1,155,525 Policy claims 2,504 2,504 - - 2,504 Total financial liabilities $ 1,490,267 $ 1,158,029 $ - $ - $ 1,158,029 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 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 values of fixed maturity 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. Policyholders’ Account Balances The fair value for liabilities under investment-type insurance contracts (accumulation annuities) is calculated using a discounted cash flow approach. Cash flows are projected using actuarial assumptions and discounted to the valuation date using risk-free rates adjusted for credit risk and the nonperformance risk of the liabilities. The fair values for insurance contracts other than investment-type contracts are not required to be disclosed. Policy Claims The carrying amounts reported for these liabilities approximate their fair value. |
4. Property and Equipment
4. Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and Equipment Property and equipment as of December 31, 2017 and 2016 is summarized as follows: December 31, 2017 December 31, 2016 Total property and equipment $ 42,293 $ 9,326 Less - accumulated depreciation (9,063 ) (4,822 ) Property and equipment net of accumulated depreciation $ 33,230 $ 4,504 |
5. Income Taxes
5. Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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 began insurance operations on April 3, 2017 and will be 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 $3.6 million expiring in 2032 through 2037. A valuation allowance of $735,111 has been established for net operating losses arising from 2012 through 2017 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 the losses may not be available for use. The Company and its subsidiaries have 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 2014 through 2017 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 will file a consolidated return with its subsidiary TRLS. The Company’s other subsidiary TRLIC files a separate federal return for life insurance companies. At August 1, 2016, TRLIC received its Certificate of Authority from the Texas Department of Insurance. As of December 31, 2017, TRLIC has $588,413 in operating loss carryforwards that have originated since 2016. The operating loss carryforwards will expire in 2031 and 2032. TRLIC’s net deferred tax asset of $135,301 has a valuation allowance against it at December 31, 2017, as the Company has not demonstrated the ability to generate taxable income. |
6. Concentrations of Credit Ris
6. Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
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 $4,993,908 as of December 31, 2017. 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 these accounts 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, 2017 | |
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 ended September 30, 2017. The lease required a deposit in the amount of $3,992 and abated the first month’s rent. The monthly rental payments were $2,432 for the first twelve months with annual increases of approximately 3% thereafter and the Company also paid a pro rata share of the operating expenses of the building. The Company entered into a new 62-month lease agreement with a third-party lessor in 2017 for utilization of office space in Austin, Texas. The lease agreement ends November 30, 2022. The lease required a deposit in the amount of $7,109 and abated the first two month’s rent. The monthly rental payments are $4,864 for the first twelve months after abatement. The Company also pays a pro rata share of the operating expenses of the building. Rent expense was $56,946 under the two agreements for the twelve months ended December 31, 2017 and $50,583 for the twelve months ended December 31, 2016 under the expired agreement. Total future minimum lease payments and a pro rata share of the buildings operating expenses to be paid under the current non-cancellable lease agreement are $80,938 in 2018, $82,487 in 2019, $84,036 in 2020, $85,585 in 2021 and $78,485 in 2022. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 subsidiaries. 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. |
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | Deferred Policy Acquisition Costs Costs that relate to and vary with the successful production of new business are deferred over the life of the policy. Deferred acquisition costs, (DAC), consist of commissions and policy issuance, underwriting and agency expenses. DAC expenses are amortized primarily over the premium-paying period of the policies, using the same assumptions as were used in computing liabilities for future policy benefits. |
Deferred Charges, Policy [Policy Text Block] | Deferred Sales Inducement Costs Sales inducement costs (SIC) are related to policy bonuses issued on some of the Company’s annuity products. SIC is deferred at the issuance of the policy and amortized over the shorter of the bonus period or the life of the policy based on the expected future profits of the business. The amount deferred is based on the difference between the fund value with the bonus and the fund value without the bonus. There was $79,866 of SIC deferred at December 31, 2017 and no SIC amortized at December 31, 2017. There was no SIC deferred or amortized during 2016. |
Receivables, Policy [Policy Text Block] | Advances and Notes Receivable Advances and notes receivable are recorded at unpaid principal balances. Management evaluates the collectability of advances and 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] | Furniture and Equipment Furniture 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. |
Policyholder Accounts, Policy [Policy Text Block] | Policyholders’ Account Balances The Company’s liability for policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the financial statement date. This liability is generally equal to the accumulated account deposits plus applicable bonus and interest credited less policyholders’ withdrawals and other charges assessed against the account balance. Interest crediting rates for individual annuities range from 2.65% to 4.50%. |
Future Policy Benefits Liability, Policy [Policy Text Block] | Future Policy Benefits Future policy benefit reserves have been computed by the net level premium method with assumptions as to investment yields, mortality and withdrawals based upon the Company’s experience. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of policy liabilities and the increase in future policy benefit reserves. Management’s judgments and estimates for future policy benefit reserves provide for possible unfavorable deviation. |
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, are recorded at cost. |
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. |
Offering Costs, 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 Outstanding 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 14,804,853 and 14,113,976 for the years ended December 31, 2017 and 2016, 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 and paid FTFC $11,963 and $33,000 for the year ended December 31, 2017 and 2016, respectively related to this agreement. The Company also paid FTFC $8,320 and $21,668 for the year ended December 31, 2017 and 2016, respectively for additional services performed outside of the administrative service agreement. The Chairman of the Company is also the Chairman, President and Chief Executive Officer of FTFC. The administrative service agreement with FTFC was terminated effective April 30, 2017. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events Management has evaluated subsequent events for recognition and disclosure in the financial statements through the date the financial statements were available to be issued. |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements — Going Concern” (“ASU 2014-15”). ASU 2014-15 requires management to evaluate an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management must evaluate whether conditions and events raise substantial doubt about an entity’s ability to continue as a going concern and then whether its plans alleviate that doubt. ASU 2014-15 was effective for annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Management has performed and continues to perform such required evaluation and has concluded there were no such conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern. The adoption of this guidance did not have a material effect on the Company’s results of operations, financial position or liquidity. In March 2016, the FASB issued ASU 2016-07 “Investments—Equity Method and Joint Ventures (Topic 323), In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions. It requires excess tax benefits from share-based awards be reported as operating activities in the consolidated statement of cash flows. Previously, these cash flows were included in financing activities. ASU 2016-09 was effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods and did not have a significant impact on the Company’s financial statements as the Company does not have a stock compensation plan. Pronouncements to be effective in the future In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows, including, but not limited to: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions and (8) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective, with retrospective adoption, for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. The Company has evaluated the impact of this guidance which will not have any material impact on the Company’s financial condition or results of operations from the adoption of this guidance. In March 2017, the FASB issued ASU 2017-08 , “ Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities ” (“ASU 2017-08”). ASU 2017-08 revises the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted. The Company is evaluating the securities the Company owns which were purchased at a premium. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – “Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 provides guidance to improve certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Specifically, the guidance: (1) Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. (2) Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. (3) Eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities. (4) Eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. (5) Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. (6) Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. (7) Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. (8) Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods and will not have a significant impact on the Company’s financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that fiscal year, with early adoption permitted. ASU 2016-02 requires the application of a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. While the Company is currently evaluating ASU 2016-02, the Company does not expect a material impact on the Company’s financial condition or results of operations from the adoption of this guidance. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses” (“ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity debt securities, trade receivables, and reinsurance recoverable. ASU 2016-13 requires a valuation allowance to be calculated on these financial assets and that they be presented on the financial statements net of the valuation allowance. This methodology is referred to as the current expected credit loss model. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of this guidance on the Company’s financial condition and results of operations. However, currently the Company does not expect a material impact on the Company’s financial condition or results of operations from the adoption of this guidance. In January 2017, the FASB issued ASU 2017-04, “Intangibles — Goodwill and Other” (“ASU 2017-04”). ASU 2017-04 will amend and simplify current goodwill impairment testing to eliminate Step 2 from the current provisions. Under the new guidance, an entity should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity still has the option to perform the quantitative assessment for a reporting unit to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. As the Company currently has no Goodwill on its balance sheet ASU 2017-04 In February 2018, the FASB issued ASU 2018-02, “Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). ASU 2018-02 was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the Tax Cuts and Jobs Act on December 22, 2017 that changed the Company’s income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is evaluating the effects of the enactment of the Tax Cuts and Jobs Act and ASU 2018-02, but does not expect a material impact on the Company’s financial condition or results of operations from the adoption of this guidance. |
2. Investments (Tables)
2. Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments Schedule [Abstract] | |
Available-for-sale Securities [Table Text Block] | Investments in fixed maturity securities available-for-sale as of December 31, 2017 and 2016 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 2,288,321 $ 93,942 $ 7,675 $ 2,374,588 Total fixed maturity securities $ 2,288,321 $ 93,942 $ 7,675 $ 2,374,588 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 |
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, 2017 and 2016 are summarized as follows: Unrealized Number of December 31, 2017 Fair Value Loss Securities Fixed maturity securities Greater than 12 months Corporate bonds $ 94,250 $ 7,675 1 Total fixed maturity securities $ 94,250 $ 7,675 1 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 Gain (Loss) on Investments [Table Text Block] | Net unrealized gains included in other comprehensive income (loss) for investments classified as available-for-sale are summarized as follows: December 31, 2017 December 31, 2016 Net unrealized appreciation on available-for-sale securities $ 86,267 $ 53,701 |
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, 2017, by contractual maturity, are summarized as follows: Amortized Cost Fair Value Due after one year through five years $ 201,243 $ 197,416 Due after five years through ten years 2,087,078 2,177,172 Total all durations $ 2,288,321 $ 2,374,588 |
Investment Income [Table Text Block] | Major categories of net investment income for the years ended December 31, 2017 and 2016 are summarized as follows: For the Years Ended December 31, 2017 2016 Fixed maturity securities $ 91,828 $ 91,368 Short-term and other investments 4,850 520 Net investment income $ 96,678 $ 91,888 |
3. Fair Value Measurements (Tab
3. Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 are summarized as follows: December 31, 2017 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 2,374,588 $ - $ 2,374,588 Total fixed maturity securities $ - $ 2,374,588 $ - $ 2,374,588 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 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Financial Instruments Disclosed, But Not Carried, at Fair Value: December 31, 2017 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 12,578,650 $ 12,578,650 $ 12,578,650 $ - $ - Accrued investment income 22,709 22,709 - - 22,709 Advances and notes receivable 24,850 24,850 - - 24,850 Total financial assets $ 12,626,209 $ 12,626,209 $ 12,578,650 $ - $ 47,559 Financial liabilities Policyholders’ account balances $ 1,487,763 $ 1,155,525 $ - $ - $ 1,155,525 Policy claims 2,504 2,504 - - 2,504 Total financial liabilities $ 1,490,267 $ 1,158,029 $ - $ - $ 1,158,029 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 |
4. Property and Equipment (Tabl
4. Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment as of December 31, 2017 and 2016 is summarized as follows: December 31, 2017 December 31, 2016 Total property and equipment $ 42,293 $ 9,326 Less - accumulated depreciation (9,063 ) (4,822 ) Property and equipment net of accumulated depreciation $ 33,230 $ 4,504 |
1. Organization and Significa20
1. Organization and Significant Accounting Policies (Details) | Dec. 22, 2017 | Feb. 01, 2017USD ($) | Aug. 01, 2016USD ($) | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2017USD ($)shares |
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||
Proceeds from Issuance or Sale of Equity | $ 1,902,250 | $ 3,062,510 | ||||
Payments of Stock Issuance Costs | 210,264 | 330,516 | ||||
Public Stock Offering, Maximum | $ 25,000,000 | |||||
Deferred Sales Inducement Cost, Net | $ 79,866 | $ 0 | $ 79,866 | |||
Weighted Average Number of Shares Outstanding, Basic (in Shares) | shares | 14,804,853 | 14,113,976 | ||||
Related Party Transaction, Amounts of Transaction | $ 8,320 | $ 21,668 | ||||
Effective Income Tax Rate Reconciliation, Percent | 21.00% | |||||
Minimum [Member] | ||||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Liability for Policyholder Contract Deposits, Interest Rate | 2.65% | 2.65% | ||||
Maximum [Member] | ||||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 7 years | |||||
Liability for Policyholder Contract Deposits, Interest Rate | 4.50% | 4.50% | ||||
Common Class A [Member] | ||||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||
Public Stock Offering, Shares (in Shares) | shares | 5,000,000 | |||||
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 | $ 10,010,485 | |||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 2,002,097 | |||||
Payments of Stock Issuance Costs | $ 1,444,127 | |||||
Intrastate Public Offering [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 | |||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 1,215,569 | |||||
Payments of Stock Issuance Costs | $ 12,865,000 | |||||
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% | |||||
Texas Republic Life Solutions [Member] | ||||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||
Payments to Acquire Businesses, Gross | $ 50,000 | |||||
Equity Method Investment, Ownership Percentage | 100.00% | |||||
Administrative Service Agreement [Member] | First Trinity Financial Corporation [Member] | ||||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||
Related Party Transaction, Amounts of Transaction | $ 11,963 | $ 33,000 |
2. Investments (Details)
2. Investments (Details) - Corporate Bond Securities [Member] - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
2. Investments (Details) [Line Items] | ||
Number of Investments Below Investment Grade | 2 | 2 |
Fixed Maturity Securities Below Investment Grade, Par Value (in Dollars) | $ 250,000 | $ 250,000 |
Minimum [Member] | ||
2. Investments (Details) [Line Items] | ||
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 92.00% | 92.00% |
2. Investments (Detai
2. Investments (Details) - Schedule of Available-for-Sale Securities - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturity Securities, Amortized Cost | $ 2,288,321 | $ 2,286,379 |
Fixed Maturity Securities, Gross Unrealized Gains | 93,942 | 68,490 |
Fixed Maturity Securities, Gross Unrealized Losses | 7,675 | 14,789 |
Fixed Maturity Securities, Fair Value | 2,374,588 | 2,340,080 |
Corporate Bond Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturity Securities, Amortized Cost | 2,288,321 | 2,286,379 |
Fixed Maturity Securities, Gross Unrealized Gains | 93,942 | 68,490 |
Fixed Maturity Securities, Gross Unrealized Losses | 7,675 | 14,789 |
Fixed Maturity Securities, Fair Value | $ 2,374,588 | $ 2,340,080 |
2. Investments (Det23
2. Investments (Details) - Schedule of Unrealized Loss on Investments | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
2. Investments (Details) - Schedule of Unrealized Loss on Investments [Line Items] | ||
Total fixed maturity securities, fair value | $ 94,250 | $ 335,728 |
Total fixed maturity securities, unrealized loss | $ 7,675 | $ 14,789 |
Total fixed maturity securities, number of securities | 1 | 3 |
Corporate Bond Securities [Member] | ||
2. Investments (Details) - Schedule of Unrealized Loss on Investments [Line Items] | ||
Fixed maturity securities greater than 12 months, fair value | $ 94,250 | $ 192,103 |
Fixed maturity securities greater than 12 months, unrealized loss | $ 7,675 | $ 9,917 |
Fixed maturity securities greater than 12 months, number of securities | 1 | 2 |
Fixed maturity securities less than 12 months, fair value | $ 143,625 | |
Fixed maturity securities less than 12 months, unrealized loss | $ 4,872 | |
Fixed maturity securities less than 12 months, number of securities | 1 |
2. Investments (Det24
2. Investments (Details) - Unrealized Gain (Loss) on Investments - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized Gain (Loss) on Investments [Abstract] | ||
Net unrealized appreciation on available-for-sale securities | $ 86,267 | $ 53,701 |
2. Investments (Det25
2. Investments (Details) - Investments Classified by Contractual Maturity Date - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Investments Classified by Contractual Maturity Date [Abstract] | ||
Due after one year through five years | $ 201,243 | |
Due after one year through five years | 197,416 | |
Due after five years through ten years | 2,087,078 | |
Due after five years through ten years | 2,177,172 | |
Total all durations | 2,288,321 | $ 2,286,379 |
Total all durations | $ 2,374,588 |
2. Investments (Det26
2. Investments (Details) - Investment Income - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net Investment Income [Line Items] | ||
Net investment income | $ 96,678 | $ 91,888 |
Corporate Bond Securities [Member] | ||
Net Investment Income [Line Items] | ||
Net investment income | 91,828 | 91,368 |
Short-term Investments [Member] | ||
Net Investment Income [Line Items] | ||
Net investment income | $ 4,850 | $ 520 |
3. Fair Value Measure
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | $ 2,374,588 | $ 2,340,080 |
Fair Value, Inputs, Level 1 [Member] | ||
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 2,374,588 | 2,340,080 |
Fair Value, Inputs, Level 3 [Member] | ||
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 0 | 0 |
Corporate Debt Securities [Member] | ||
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 2,374,588 | 2,340,080 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 0 | 0 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 2,374,588 | 2,340,080 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | $ 0 | $ 0 |
3. Fair Value Measu28
3. Fair Value Measurements (Details) - Fair Value, by Balance Sheet Grouping - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 12,578,650 | $ 10,780,672 | $ 8,975,991 |
Cash and cash equivalents | 12,578,650 | 10,780,672 | |
Accrued investment income | 22,709 | 22,709 | |
Accrued investment income | 22,709 | 22,709 | |
Notes receivable | 24,850 | 35,775 | |
Notes receivable | 24,850 | 35,775 | |
Total financial assets | 12,626,209 | 10,839,156 | |
Total financial assets | 12,626,209 | 10,839,156 | |
Financial liabilities | |||
Policyholders’ account balances | 1,487,763 | 0 | |
Policyholders’ account balances | 1,155,525 | ||
Policy claims | 2,504 | 0 | |
Policy claims | 2,504 | ||
Total financial liabilities | 1,490,267 | ||
Total financial liabilities | 1,158,029 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 12,578,650 | 10,780,672 | |
Accrued investment income | 0 | 0 | |
Notes receivable | 0 | 0 | |
Total financial assets | 12,578,650 | 10,780,672 | |
Financial liabilities | |||
Policyholders’ account balances | 0 | ||
Policy claims | 0 | ||
Total financial liabilities | 0 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Accrued investment income | 0 | 0 | |
Notes receivable | 0 | 0 | |
Total financial assets | 0 | 0 | |
Financial liabilities | |||
Policyholders’ account balances | 0 | ||
Policy claims | 0 | ||
Total financial liabilities | 0 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Accrued investment income | 22,709 | 22,709 | |
Notes receivable | 24,850 | 35,775 | |
Total financial assets | 47,559 | $ 58,484 | |
Financial liabilities | |||
Policyholders’ account balances | 1,155,525 | ||
Policy claims | 2,504 | ||
Total financial liabilities | $ 1,158,029 |
4. Property and Equip
4. Property and Equipment (Details) - Schedule of Property, Plant and Equipment - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Property, Plant and Equipment [Abstract] | ||
Total property and equipment | $ 42,293 | $ 9,326 |
Less - accumulated depreciation | (9,063) | (4,822) |
Property and equipment net of accumulated depreciation | $ 33,230 | $ 4,504 |
5. Income Taxes (Details)
5. Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
5. Income Taxes (Details) [Line Items] | |
Operating Loss Carryforwards | $ 3,600,000 |
Deferred Tax Assets, Valuation Allowance | 735,111 |
Deferred Tax Assets, Net of Valuation Allowance | $ 135,301 |
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 | 2,037 |
Texas Republic Life Insurance Company [Member] | |
5. Income Taxes (Details) [Line Items] | |
Operating Loss Carryforwards | $ 588,413 |
Operating Loss Carryforwards, Expiration Date 1 | 2,032 |
6. Concentrations of Credit R31
6. Concentrations of Credit Risk (Details) | Dec. 31, 2017USD ($) |
Risks and Uncertainties [Abstract] | |
Cash, FDIC Insured Amount | $ 250,000 |
Cash, Uninsured Amount | $ 4,993,908 |
7. Lease Commitment (Details)
7. Lease Commitment (Details) - USD ($) | May 01, 2014 | Dec. 31, 2017 | Dec. 31, 2016 |
7. Lease Commitment (Details) [Line Items] | |||
Security Deposit | $ 7,109 | $ 3,992 | |
Operating Leases, Rent Expense | 56,946 | $ 50,583 | |
Austin, Texas [Member] | |||
7. Lease Commitment (Details) [Line Items] | |||
Lease Expiration Date | Sep. 30, 2017 | ||
Security Deposit | $ 3,992 | 7,109 | |
Operating Leases, Rent Expense, Minimum Rentals | $ 2,432 | $ 4,864 | |
Description of Lessee Leasing Arrangements, Operating Leases | annual increases of approximately 3% thereafter and the Company also paid a pro rata share of the operating expenses of the building | ||
Lessee, Operating Lease, Term of Contract | 62 months | ||
Operating Leases, Future Minimum Payments, Due in Two Years | $ 80,938 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 82,487 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 84,036 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 85,585 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | $ 78,485 |