Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 14, 2019 | |
Document Information Line Items | ||
Entity Registrant Name | Texas Republic Capital Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 14,801,587 | |
Amendment Flag | false | |
Entity Central Index Key | 0001560452 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity Interactive Data Current | Yes |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale fixed maturity securities at fair value (Amortized cost: $6,932,948 and $6,828,467 as of June 30, 2019 and December 31, 2018, respectively) | $ 7,290,155 | $ 6,665,056 |
Mortgage loans | 1,419,459 | 1,445,030 |
Other long-term investments | 1,288,504 | 449,461 |
Total investments | 9,998,118 | 8,559,547 |
Cash and cash equivalents | 10,581,544 | 6,511,652 |
Accrued investment income | 86,735 | 76,668 |
Due premium | 24,775 | 5,050 |
Deferred policy acquisition costs | 476,422 | 326,210 |
Deferred sales inducement costs | 428,004 | 164,316 |
Advances and notes receivable | 72,581 | 14,360 |
Leased property - right to use | 295,038 | 0 |
Security deposit | 7,109 | 7,109 |
Prepaid and other assets | 69,918 | 33,871 |
Furniture and equipment, net | 33,141 | 34,210 |
Total assets | 22,073,385 | 15,732,993 |
Liabilities and Shareholders’ Equity | ||
Policyholders’ account balances | 9,123,794 | 3,165,519 |
Future policy benefits | 463,285 | 338,407 |
Policy claims and other benefits | 36,492 | 28,306 |
Liability for deposit-type contracts | 14,650 | 19,540 |
Other policyholder liabilities | 370,903 | 9,283 |
Total policy liabilities | 10,009,124 | 3,561,055 |
Lease liability | 295,038 | 0 |
Deferred taxes | 34,848 | 0 |
Accounts payable | 48,583 | 143,065 |
Total liabilities | 10,387,593 | 3,704,120 |
Shareholders’ equity | ||
Common stock, par value $.01 per share, 25,000,000 shares authorized, 14,867,097 issued as of June 30, 2019 and December 31, 2018, 14,801,587 and 14,850,097 outstanding as of June 30, 2019 and December 31, 2018, respectively | 148,671 | 148,671 |
Additional paid-in capital | 17,538,618 | 17,538,618 |
Treasury stock, at cost (65,510 and 17,000 shares as of June 30, 2019 and December 31, 2018, respectively) | (81,175) | (50,000) |
Accumulated other comprehensive income (loss) | 321,908 | (162,781) |
Accumulated deficit | (6,242,230) | (5,445,635) |
Total shareholders’ equity | 11,685,792 | 12,028,873 |
Total liabilities and shareholders’ equity | $ 22,073,385 | $ 15,732,993 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parentheticals) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale fixed maturity securities Amortized cost (in Dollars) | $ 6,932,948 | $ 6,828,467 |
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 | 14,867,097 |
Common stock, shares outstanding | 14,801,587 | 14,850,097 |
Treasury stock, shares | 65,510 | 17,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Premiums and other considerations | $ 132,530 | $ 158,289 | $ 250,922 | $ 235,757 |
Net investment income | 173,647 | 76,308 | 310,218 | 135,882 |
Commission income | 79,323 | 40,339 | 82,856 | 40,562 |
Total revenues | 385,500 | 274,936 | 643,996 | 412,201 |
Benefits, claims and expenses | ||||
Increase in future policy benefits | 65,429 | 79,196 | 124,778 | 124,260 |
Death and other benefits | 5,947 | 7,693 | 8,186 | 5,930 |
Interest credited to policyholders | 65,501 | 12,210 | 91,533 | 31,912 |
Total benefits and claims | 136,877 | 99,099 | 224,497 | 162,102 |
Policy acquisition costs deferred | (97,859) | (78,626) | (189,808) | (146,118) |
Policy acquisition costs amortized | 17,507 | 21,157 | 38,516 | 31,116 |
Commissions | 109,260 | 103,405 | 208,539 | 163,303 |
Salaries and wages | 354,671 | 187,325 | 612,531 | 377,613 |
Employee benefits | 25,435 | 18,140 | 48,526 | 30,410 |
Taxes, licenses and fees | 36,958 | 15,541 | 61,308 | 35,990 |
Office rent | 26,309 | 21,942 | 46,795 | 40,276 |
Director fees | 9,500 | 12,500 | 23,750 | 27,500 |
Third-party administration fees | 50,805 | 46,650 | 95,114 | 90,374 |
Service and transfer agent fees | 11,187 | 10,494 | 21,014 | 25,860 |
Travel, meals and entertainment | 22,741 | 10,278 | 48,121 | 15,814 |
Professional fees | 68,370 | 47,986 | 111,988 | 103,790 |
Furniture, equipment and software | 13,457 | 10,503 | 22,348 | 17,695 |
Office and other expenses | 19,959 | 42,698 | 67,352 | 59,805 |
Total benefits, claims and expenses | 805,177 | 569,092 | 1,440,591 | 1,035,530 |
Net loss | $ (419,677) | $ (294,156) | $ (796,595) | $ (623,329) |
Net loss per common share outstanding (in Dollars per share) | $ (0.03) | $ (0.02) | $ (0.05) | $ (0.04) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net loss | $ (419,677) | $ (294,156) | $ (796,595) | $ (623,329) |
Other comprehensive income (loss) | ||||
Total net unrealized gains (losses) arising during the period | 242,067 | (75,975) | 520,618 | (174,987) |
Adjustment to deferred acquisition costs | (398) | 1,336 | (1,081) | 2,136 |
Deferred taxes | (29,890) | 0 | (34,848) | 0 |
Total other comprehensive income (loss) | 211,779 | (74,639) | 484,689 | (172,851) |
Total comprehensive loss | $ (207,898) | $ (368,795) | $ (311,906) | $ (796,180) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2017 | $ 148,671 | $ 17,538,618 | $ (15,000) | $ 86,267 | $ (4,218,199) | $ 13,540,357 |
Purchase of stock | (5,000) | (5,000) | ||||
Treasury shares issued | 0 | |||||
Other comprehensive income (loss) | (172,851) | (172,851) | ||||
Net loss | (623,329) | (623,329) | ||||
Balance at Jun. 30, 2018 | 148,671 | 17,538,618 | (20,000) | (86,584) | (4,841,528) | 12,739,177 |
Balance at Mar. 31, 2018 | 148,671 | 17,538,618 | (15,000) | (11,945) | (4,547,372) | 13,112,972 |
Purchase of stock | (5,000) | (5,000) | ||||
Other comprehensive income (loss) | (74,639) | (74,639) | ||||
Net loss | (294,156) | (294,156) | ||||
Balance at Jun. 30, 2018 | 148,671 | 17,538,618 | (20,000) | (86,584) | (4,841,528) | 12,739,177 |
Balance at Dec. 31, 2018 | 148,671 | 17,538,618 | (50,000) | (162,781) | (5,445,635) | 12,028,873 |
Purchase of stock | (59,900) | (59,900) | ||||
Treasury shares issued | 28,725 | 28,725 | ||||
Other comprehensive income (loss) | 484,689 | 484,689 | ||||
Net loss | (796,595) | (796,595) | ||||
Balance at Jun. 30, 2019 | 148,671 | 17,538,618 | (81,175) | 321,908 | (6,242,230) | 11,685,792 |
Balance at Mar. 31, 2019 | 148,671 | 17,538,618 | (100,000) | 110,129 | (5,822,553) | 11,874,865 |
Purchase of stock | (9,900) | (9,900) | ||||
Treasury shares issued | 28,725 | 28,725 | ||||
Other comprehensive income (loss) | 211,779 | 211,779 | ||||
Net loss | (419,677) | (419,677) | ||||
Balance at Jun. 30, 2019 | $ 148,671 | $ 17,538,618 | $ (81,175) | $ 321,908 | $ (6,242,230) | $ 11,685,792 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net loss | $ (796,595) | $ (623,329) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Accretion of discount on investments | (36,727) | (11,019) |
Provision for depreciation | 6,102 | 5,020 |
Policy acquisition costs deferred | (189,808) | (146,118) |
Policy acquisition costs amortized | 38,516 | 31,116 |
Amortization of mortgage loan origination fees | 901 | (9,565) |
Interest credited to policyholders | 91,533 | 31,912 |
Non-cash salary expense | 28,725 | 0 |
Change in assets and liabilities: | ||
Accrued investment income | (10,067) | (31,067) |
Due premium | (19,725) | (31,750) |
Advances and notes receivable | (58,221) | 7,306 |
Prepaid and other assets | (36,047) | (45,923) |
Future policy benefits | 124,878 | 124,374 |
Policy claims | 8,186 | 5,930 |
Other policy liabilities | 361,620 | (83,201) |
Accounts payable | (94,482) | 34,415 |
Net cash used in operating activities | (581,211) | (741,899) |
Investing activities | ||
Purchase of furniture and equipment | (5,033) | 0 |
Purchase of fixed maturity securities | (202,726) | (2,423,642) |
Sales of fixed maturity securities | 97,225 | 0 |
Purchase of mortgage loans | 0 | (566,812) |
Payments on mortgage loans | 25,378 | 0 |
Purchase of other long-term investments | (882,371) | (251,000) |
Payments on other long-term investments | 80,366 | 0 |
Net cash used in investing activities | (887,161) | (3,241,454) |
Financing activities | ||
Purchase of treasury stock | (59,900) | (5,000) |
Policyholder deposits | 5,668,879 | 1,316,811 |
Policyholder withdrawals | (65,590) | 0 |
Deposit-type contracts - deposits | 0 | 24,175 |
Deposit-type contracts - withdrawals | (5,125) | (5,125) |
Net cash provided by financing activities | 5,538,264 | 1,330,861 |
Increase (decrease) in cash and cash equivalents | 4,069,892 | (2,652,492) |
Cash and cash equivalents, beginning of period | 6,511,652 | 12,578,650 |
Cash and cash equivalents, end of period | $ 10,581,544 | $ 9,926,158 |
1. Organization and Significant
1. Organization and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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. During 2018 the Company made capital contributions of $2,000,000 and $750,000 to TRLIC. During the second quarter of 2019 the Company made an additional capital contribution to TRLIC of mortgage loans valued at $857,133 bringing the total capitalization of TRLIC to $6,607,133. TRLS, an insurance agency, was incorporated February 1, 2017. The Company capitalized TRLS with $50,000 and owns 100% of TRLS. During 2018 the Company made a capital contribution of $100,000 bringing the total capitalization of TRLS to $150,000. 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 unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation of the results for the interim periods have been included. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ended December 31, 2019 or for any other interim period or for any other future year. Certain financial information which is normally included in notes to consolidated financial statements prepared in accordance with U.S. GAAP, but which is not required for interim reporting purposes, has been condensed or omitted. The accompanying consolidated financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in the Company’s report on Form 10-K for the year ended December 31, 2018. 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 shareholders’ 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 will continue 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. The Company’s mortgage loan portfolio is comprised of residential properties with loan to appraised value ratios below 72%. Mortgage loans are carried at current book value. The Company’s other long-term investments are comprised of lottery prize cash flows holdings held at amortized cost. They are categorized as other long-term investments in the statement of financial position and are assignments of the future rights from lottery winners purchased at a discounted price. Payments on these investments are made by state run lotteries. Cash and Cash Equivalents Cash and cash equivalents include cash on hand 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 life policies and as profits emerge on annuity products. Amortization uses the same assumptions as were used in computing liabilities for future policy benefits. There was $189,808 of DAC deferred for the six months ended June 30, 2019 and $38,516 of DAC amortized for the six months ended June 30, 2019. For the three months ended June 30, 2019 there was $97,859 of DAC deferred and $17,507 of DAC amortized. There was $146,118 of DAC deferred for the six months ended June 30, 2018 and $31,116 of DAC amortized for the six months ended June 30, 2018. For the three months ended June 30, 2018 there was $78,626 of DAC deferred and $21,157 of DAC amortized. 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 $278,157 of SIC deferred for the six months ended June 30, 2019 and $14,469 of SIC amortized for the six months ended June 30, 2019. For the three months ended June 30, 2019 there was $151,998 of SIC deferred and $9,620 of SIC amortized. There was $72,979 of SIC deferred for the six months ended June 30, 2018 and $1,760 of SIC amortized for the six months ended June 30, 2018. For the three months ended June 30, 2018 there was $46,804 of SIC deferred and $520 of SIC amortized. 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. Leased Property – Right to Use Asset In February 2016, the FASB issued ASU 2016-02, Lease Accounting (Topic 842) (“ASU 2016-02”). Under ASU 2016-02, a lessee is required to recognize assets and liabilities for leases with lease terms of more than twelve months. The Company’s home office lease has a term greater than one year, and the Company recognizes on the balance sheet as of January 1, 2019 a right of use (“ROU”) operating lease asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the income statement over the lease term on a straight-line basis. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The Company amortized $36,027 and $15,335 of the asset and liability for the six and three months ending June 30, 2019, respectively. 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 3.24% to 5.00%. 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. Net Loss Per Common Share Outstanding Net loss per common share is calculated using the weighted average number of common shares outstanding during the year. The weighted average common shares outstanding were 14,821,550 and 14,863,930 for the six months ended June 30, 2019 and 2018, respectively. The weighted average common shares outstanding were 14,801,335 and 14,863,764 for the three months ended June 30, 2019 and 2018, respectively. Related Party Transactions During 2018 the Company entered into an agreement with First Trinity Financial Corporation (“FTFC”) where FTFC will use its resources to source mortgages on real estate and lottery bonds. FTFC will present to the Company investments based on criteria the Company has established. The Company has the option to purchase the presented investment assets directly from the seller or to decline the purchase based on the Company’s analysis of the investment. All mortgages and lottery bonds that were purchased by the Company in 2019 and 2018 were obtained through this agreement. 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 the date the financial statements were available to be issued. Recent Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” In March 2017, the FASB issued ASU 2017-08 Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities In January 2016, the FASB issued ASU 2016-01, Financial Instruments – “Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” In February 2016, the FASB issued ASU 2016-02, “Leases” In July 2018, the FASB issued updated guidance (Accounting Standards Update 2018-11) that provides entities with an additional (and optional) transition method to adopt the new standard on leases. Under this new transition method, an entity initially applies the new standard on leases at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new standard on leases will continue to be in accordance with current GAAP (Topic 840, Leases). An entity that elects this additional (and optional) transition method must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The Company adopted ASU 2016-02, as of January 1, 2019. The Company elected to utilize the cumulative-effect adjustment to the opening balance of retained earnings for the year of adoption. Accordingly, the Company’s reporting for the comparative periods prior to adoption continue to be presented in the financial statements in accordance with previous lease accounting guidance. The Company also elected to apply all practical expedients applicable to the Company in the updated guidance for transition for the lease in effect at adoption, including using hindsight to determine the lease term of the existing leases, the option to not reassess whether an existing contract is a lease or contains a lease and whether the lease is an operating or finance lease. The Company increased assets and liabilities by $331,065 at the adoption date. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments” In January 2017, the FASB issued ASU 2017-04, “Intangibles — Goodwill and Other” (“ASU 2017-04”). In August 2018, the FASB issued ASU 2018-12 Financial Services-Insurance (Topic 944) Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement 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” |
2. Investments
2. Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments Schedule [Abstract] | |
Investment [Text Block] | 2. Investments Fixed Maturity Securities Available-For-Sale Investments in fixed maturity securities available-for-sale as of June 30, 2019 and December 31, 2018 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30 , 2019 (Unaudited) Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 6,932,948 $ 391,355 $ 34,148 $ 7,290,155 Total fixed maturity securities $ 6,932,948 $ 391,355 $ 34,148 $ 7,290,155 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 6,828,467 $ 25,916 $ 189,327 $ 6,665,056 Total fixed maturity securities $ 6,828,467 $ 25,916 $ 189,327 $ 6,665,056 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 June 30, 2019 and December 31, 2018 are summarized as follows: Unrealized Number of June 30 , 2019 (Unaudited) Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ - $ - - Greater than 12 months Corporate bonds 470,621 34,148 4 Total fixed maturity securities $ 470,621 34,148 4 Unrealized Number of December 31, 2018 Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ 4,321,663 $ 170,332 36 Greater than 12 months Corporate bonds 82,500 18,995 1 Total fixed maturity securities $ 4,404,163 $ 189,327 37 The fixed maturity securities in a loss position had a fair value to amortized cost ratio of at least 91.0% as of June 30, 2019 and at least 80% as of December 31, 2018. One fixed maturity security with a par value of $100,000 and currently in an unrealized loss position is below investment grade as rated by Standard and Poor’s as of June 30, 2019. One additional fixed maturity security with a par value of $150,000 in a realized gain position is also below investment grade as of June 30, 2019. Two securities with a par value of $250,000 were below investment grade as rated by Standard and Poor’s as of December 31, 2018. 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 six months ended June 30, 2019 and the year ended December 31, 2018. Management believes that the Company will fully recover its cost basis in the securities held as of June 30, 2019, 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 accumulated other comprehensive income for investments classified as available-for-sale are summarized as follows: (Unaudited) June 30, 2019 December 31, 2018 Unrealized appreciation (depreciation) on available-for-sale securities $ 357,207 $ (163,411 ) Adjustment to deferred acquisition costs (451 ) 630 Deferred taxes (34,848 ) - Net unrealized appreciation (depreciation) on available-for-sale securities $ 321,908 $ (162,781 ) The amortized cost and fair value of fixed maturity available-for-sale securities as of June 30, 2019, by contractual maturity, are summarized as follows: (Unaudited) Amortized Cost Fair Value Due after one year through five years $ 2,766,442 $ 2,881,136 Due after five years through ten years 2,917,323 3,103,016 Due after ten years 1,249,183 1,306,003 Total fixed maturity securities $ 6,932,948 $ 7,290,155 The amortized cost and fair value of other long-term investments as of June 30, 2019, by contractual maturity, are summarized as follows: (Unaudited) Amortized Cost Fair Value Due in one year or less $ 291,606 $ 264,581 Due after one year through five years 762,605 937,908 Due after five years through ten years 225,306 321,721 Due after ten years 8,987 17,085 Total other long-term investments $ 1,288,504 $ 1,541,295 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. Mortgage Loans on Real Estate The Company utilizes the ratio of the carrying value of individual mortgage loans compared to the individual appraisal value to evaluate the credit quality of its mortgage loans on real estate (commonly referred to as the loan-to-value ratio). Currently, all of the Company’s mortgage loans are loans on residential properties. The Company’s mortgage loans on real estate by credit quality using this ratio as of June 30, 2019 and December 31, 2018 are summarized as follows: Loan-To-Value-Ratio (Unaudited) June 30, 2019 December 31, 2018 70% to 80% $ 76,266 $ 75,947 60% to 70% 563,666 573,506 50% to 60% 665,787 677,169 40% to 50% 113,740 118,408 Total $ 1,419,459 $ 1,445,030 Major categories of net investment income for the three and six months ended June 30, 2019 and 2018 are summarized as follows: (Unaudited) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Fixed maturity securities $ 75,126 $ 27,799 $ 149,673 $ 80,347 Other long-term assets 28,789 10,607 40,864 10,607 Mortgage loans 28,140 6,229 53,567 6,229 Short-term and other investments 45,528 37,145 78,105 48,813 Gross investment income 177,583 81,780 322,209 145,996 Investment expenses (3,936 ) (5,472 ) (11,991 ) (10,114 ) Net investment income $ 173,647 $ 76,308 $ 310,218 $ 135,882 |
3. Fair Value Measurements
3. Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
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 consolidated 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 June 30, 2019 and December 31, 2018 are summarized as follows: June 30 , 2019 (Unaudited) Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 7,290,155 $ - $ 7,290,155 Total fixed maturity securities $ - $ 7,290,155 $ - $ 7,290,155 December 31, 2018 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 6,665,056 $ - $ 6,665,056 Total fixed maturity securities $ - $ 6,665,056 $ - $ 6,665,056 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 and financial liabilities disclosed, but not carried, at fair value as of June 30, 2019 and December 31, 2018 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: June 30, 2019 (Unaudited) Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 10,581,544 $ 10,581,544 $ 10,581,544 $ - $ - Mortgages on real estate 1,419,459 1,398,403 - - 1,398,403 Other long-term investments 1,288,504 1,541,295 - - 1,541,295 Accrued investment income 86,735 86,735 - - 86,735 Advances and notes receivable 72,581 72,581 - - 72,581 Total financial assets $ 13,448,823 13,680,558 $ 10,581,544 $ - 3,099,014 Financial liabilities Policyholders’ account balances $ 9,123,794 7,623,324 $ - $ - 7,623,324 Policy claims 36,492 36,492 - - 36,492 Total financial liabilities $ 9,160,286 $ 7,659,816 $ - $ - $ 7,659,816 December 31, 2018 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 6,511,652 $ 6,511,652 $ 6,511,652 $ - $ - Mortgages on real estate 1,445,030 1,457,196 - - 1,457,196 Other long-term investments 449,461 539,544 - - 539,544 Accrued investment income 76,668 76,668 - - 76,668 Advances and notes receivable 14,360 14,360 - - 14,360 Total financial assets $ 8,497,171 8,599,420 $ 6,511,652 $ - $ 2,087,768 Financial liabilities Policyholders’ account balances $ 3,165,519 $ 2,375,631 $ - $ - $ 2,375,631 Policy claims 28,306 28,306 - - 28,306 Total financial liabilities $ 3,193,825 $ 2,403,937 $ - $ - $ 2,403,937 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 securities is 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. Mortgages on Real Estate The Company’s mortgage loan portfolio is comprised of residential properties with loan to appraised value ratios below 72%. The fair values for mortgage loans are estimated using discounted cash flow analyses. For residential mortgage loans, the discount rate used was indexed to the LIBOR yield curve adjusted for an appropriate credit spread. Other Long-Term Investments Other long-term investments are comprised of lottery prize receivables and fair value is derived by using a discounted cash flow approach. Projected cash flows are discounted using the average FTSE Pension Liability Index in effect at the end of each period. 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. Income Taxes
4. Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 4. Income Taxes The Company files a consolidated return with its subsidiary TRLS. The Company’s other subsidiary TRLIC files a separate federal return for life insurance companies. TRLIC is 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. The company also has $460,664 of loss carryforwards from 2018 and 2019 that will not expire. A valuation allowance of $849,967 has been established for net operating losses arising from 2012 through 2019 since the Company has not demonstrated the ability to generate taxable income. As of June 30, 2019, TRLIC has $1,664,489 in operating loss carryforwards that have originated since 2016. In accordance with the Tax Cuts and Jobs Act of 2017, $588,407 of the operating loss carryforwards were generated prior to January 1, 2018 and will expire in 2031 and 2032. Additionally, TRLIC has loss carryforwards of $1,076,082 from 2018 and 2019 which will not expire. TRLIC’s operating loss carryforwards has a valuation allowance of $349,543 against it at June 30, 2019, as TRLIC has not yet 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 2015 through 2018 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. |
5. Concentrations of Credit Ris
5. Concentrations of Credit Risk | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 5. 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 $934,874 as of June 30, 2019. 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. |
6. Stock Incentive Plan
6. Stock Incentive Plan | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | 6. Stock Incentive Plan The Company’s Agent Stock Incentive Plan (“ASIP”) was approved in August 2018 by the Texas State Securities Board. The plan awards shares of Texas Republic Capital Corporation common stock to agents based on certain production levels achieved in sales of life and annuity products. Calculation of awards at December 31, 2018 are based on production for the period of August through December 2018. The ASIP issued 11,490 shares during the first six months 2019. |
7. Lease Commitment
7. Lease Commitment | 6 Months Ended |
Jun. 30, 2019 | |
ASU 2016-02 Transition [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | 7. Lease Commitment The Company rents office space for certain administrative operations under an agreement that expires in 2022. The lease includes an option to extend or renew the lease term. The operating lease liability includes lease payments related to options to extend or renew the lease term only if the Company is reasonably certain of exercising those options. The exercise of the renewal option is at the Company's discretion; at this time there is uncertainty as to the Company exercising its renewal option so the option is not included in the determination of the present value calculation. In determining the present value of lease payments, the Company uses its incremental borrowing rate obtained from its main commercial bank. Future payments under operating lease arrangements accounted for under ASC Topic 842 as of June 30, 2019 are as follows: 2019 (remaining) $ 45,241 2020 91,896 2021 93,593 2022 95,006 Total operating lease payments, undiscounted $ 325,736 Less: interest (30,698 ) Lease liability, at present value $ 295,038 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation of the results for the interim periods have been included. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ended December 31, 2019 or for any other interim period or for any other future year. Certain financial information which is normally included in notes to consolidated financial statements prepared in accordance with U.S. GAAP, but which is not required for interim reporting purposes, has been condensed or omitted. The accompanying consolidated financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in the Company’s report on Form 10-K for the year ended December 31, 2018. |
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. |
Reclassification, Policy [Policy Text Block] | 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. |
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 shareholders’ 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 will continue 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. The Company’s mortgage loan portfolio is comprised of residential properties with loan to appraised value ratios below 72%. Mortgage loans are carried at current book value. The Company’s other long-term investments are comprised of lottery prize cash flows holdings held at amortized cost. They are categorized as other long-term investments in the statement of financial position and are assignments of the future rights from lottery winners purchased at a discounted price. Payments on these investments are made by state run lotteries. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash on hand 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 life policies and as profits emerge on annuity products. Amortization uses the same assumptions as were used in computing liabilities for future policy benefits. There was $189,808 of DAC deferred for the six months ended June 30, 2019 and $38,516 of DAC amortized for the six months ended June 30, 2019. For the three months ended June 30, 2019 there was $97,859 of DAC deferred and $17,507 of DAC amortized. There was $146,118 of DAC deferred for the six months ended June 30, 2018 and $31,116 of DAC amortized for the six months ended June 30, 2018. For the three months ended June 30, 2018 there was $78,626 of DAC deferred and $21,157 of DAC amortized. |
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 $278,157 of SIC deferred for the six months ended June 30, 2019 and $14,469 of SIC amortized for the six months ended June 30, 2019. For the three months ended June 30, 2019 there was $151,998 of SIC deferred and $9,620 of SIC amortized. There was $72,979 of SIC deferred for the six months ended June 30, 2018 and $1,760 of SIC amortized for the six months ended June 30, 2018. For the three months ended June 30, 2018 there was $46,804 of SIC deferred and $520 of SIC amortized. |
Receivable [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. |
Lessee, Leases [Policy Text Block] | Leased Property – Right to Use Asset In February 2016, the FASB issued ASU 2016-02, Lease Accounting (Topic 842) (“ASU 2016-02”). Under ASU 2016-02, a lessee is required to recognize assets and liabilities for leases with lease terms of more than twelve months. The Company’s home office lease has a term greater than one year, and the Company recognizes on the balance sheet as of January 1, 2019 a right of use (“ROU”) operating lease asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the income statement over the lease term on a straight-line basis. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The Company amortized $36,027 and $15,335 of the asset and liability for the six and three months ending June 30, 2019, respectively. |
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 3.24% to 5.00%. |
Liability for Future Policy Benefit [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. |
Earnings Per Share, Policy [Policy Text Block] | Net Loss Per Common Share Outstanding Net loss per common share is calculated using the weighted average number of common shares outstanding during the year. The weighted average common shares outstanding were 14,821,550 and 14,863,930 for the six months ended June 30, 2019 and 2018, respectively. The weighted average common shares outstanding were 14,801,335 and 14,863,764 for the three months ended June 30, 2019 and 2018, respectively. |
Realted Party Transactions, Policy [Policy Text Block] | Related Party Transactions During 2018 the Company entered into an agreement with First Trinity Financial Corporation (“FTFC”) where FTFC will use its resources to source mortgages on real estate and lottery bonds. FTFC will present to the Company investments based on criteria the Company has established. The Company has the option to purchase the presented investment assets directly from the seller or to decline the purchase based on the Company’s analysis of the investment. All mortgages and lottery bonds that were purchased by the Company in 2019 and 2018 were obtained through this agreement. 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 the date the financial statements were available to be issued. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” In March 2017, the FASB issued ASU 2017-08 Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities In January 2016, the FASB issued ASU 2016-01, Financial Instruments – “Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” In February 2016, the FASB issued ASU 2016-02, “Leases” In July 2018, the FASB issued updated guidance (Accounting Standards Update 2018-11) that provides entities with an additional (and optional) transition method to adopt the new standard on leases. Under this new transition method, an entity initially applies the new standard on leases at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new standard on leases will continue to be in accordance with current GAAP (Topic 840, Leases). An entity that elects this additional (and optional) transition method must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The Company adopted ASU 2016-02, as of January 1, 2019. The Company elected to utilize the cumulative-effect adjustment to the opening balance of retained earnings for the year of adoption. Accordingly, the Company’s reporting for the comparative periods prior to adoption continue to be presented in the financial statements in accordance with previous lease accounting guidance. The Company also elected to apply all practical expedients applicable to the Company in the updated guidance for transition for the lease in effect at adoption, including using hindsight to determine the lease term of the existing leases, the option to not reassess whether an existing contract is a lease or contains a lease and whether the lease is an operating or finance lease. The Company increased assets and liabilities by $331,065 at the adoption date. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments” In January 2017, the FASB issued ASU 2017-04, “Intangibles — Goodwill and Other” (“ASU 2017-04”). In August 2018, the FASB issued ASU 2018-12 Financial Services-Insurance (Topic 944) Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement 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” |
2. Investments (Tables)
2. Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments Schedule [Abstract] | |
Available-for-sale Securities [Table Text Block] | Investments in fixed maturity securities available-for-sale as of June 30, 2019 and December 31, 2018 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30 , 2019 (Unaudited) Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 6,932,948 $ 391,355 $ 34,148 $ 7,290,155 Total fixed maturity securities $ 6,932,948 $ 391,355 $ 34,148 $ 7,290,155 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 6,828,467 $ 25,916 $ 189,327 $ 6,665,056 Total fixed maturity securities $ 6,828,467 $ 25,916 $ 189,327 $ 6,665,056 |
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 June 30, 2019 and December 31, 2018 are summarized as follows: Unrealized Number of June 30 , 2019 (Unaudited) Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ - $ - - Greater than 12 months Corporate bonds 470,621 34,148 4 Total fixed maturity securities $ 470,621 34,148 4 Unrealized Number of December 31, 2018 Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ 4,321,663 $ 170,332 36 Greater than 12 months Corporate bonds 82,500 18,995 1 Total fixed maturity securities $ 4,404,163 $ 189,327 37 |
Unrealized Gain (Loss) on Investments [Table Text Block] | (Unaudited) June 30, 2019 December 31, 2018 Unrealized appreciation (depreciation) on available-for-sale securities $ 357,207 $ (163,411 ) Adjustment to deferred acquisition costs (451 ) 630 Deferred taxes (34,848 ) - Net unrealized appreciation (depreciation) on available-for-sale securities $ 321,908 $ (162,781 ) |
Investments Classified by Contractual Maturity Date [Table Text Block] | (Unaudited) Amortized Cost Fair Value Due after one year through five years $ 2,766,442 $ 2,881,136 Due after five years through ten years 2,917,323 3,103,016 Due after ten years 1,249,183 1,306,003 Total fixed maturity securities $ 6,932,948 $ 7,290,155 (Unaudited) Amortized Cost Fair Value Due in one year or less $ 291,606 $ 264,581 Due after one year through five years 762,605 937,908 Due after five years through ten years 225,306 321,721 Due after ten years 8,987 17,085 Total other long-term investments $ 1,288,504 $ 1,541,295 |
Mortgage Loan on Real Estate [Table Text Block] | The Company utilizes the ratio of the carrying value of individual mortgage loans compared to the individual appraisal value to evaluate the credit quality of its mortgage loans on real estate (commonly referred to as the loan-to-value ratio). Currently, all of the Company’s mortgage loans are loans on residential properties. The Company’s mortgage loans on real estate by credit quality using this ratio as of June 30, 2019 and December 31, 2018 are summarized as follows: Loan-To-Value-Ratio (Unaudited) June 30, 2019 December 31, 2018 70% to 80% $ 76,266 $ 75,947 60% to 70% 563,666 573,506 50% to 60% 665,787 677,169 40% to 50% 113,740 118,408 Total $ 1,419,459 $ 1,445,030 |
Investment Income [Table Text Block] | Major categories of net investment income for the three and six months ended June 30, 2019 and 2018 are summarized as follows: (Unaudited) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Fixed maturity securities $ 75,126 $ 27,799 $ 149,673 $ 80,347 Other long-term assets 28,789 10,607 40,864 10,607 Mortgage loans 28,140 6,229 53,567 6,229 Short-term and other investments 45,528 37,145 78,105 48,813 Gross investment income 177,583 81,780 322,209 145,996 Investment expenses (3,936 ) (5,472 ) (11,991 ) (10,114 ) Net investment income $ 173,647 $ 76,308 $ 310,218 $ 135,882 |
3. Fair Value Measurements (Tab
3. Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 are summarized as follows: June 30 , 2019 (Unaudited) Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 7,290,155 $ - $ 7,290,155 Total fixed maturity securities $ - $ 7,290,155 $ - $ 7,290,155 December 31, 2018 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 6,665,056 $ - $ 6,665,056 Total fixed maturity securities $ - $ 6,665,056 $ - $ 6,665,056 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Financial Instruments Disclosed, But Not Carried, at Fair Value: June 30, 2019 (Unaudited) Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 10,581,544 $ 10,581,544 $ 10,581,544 $ - $ - Mortgages on real estate 1,419,459 1,398,403 - - 1,398,403 Other long-term investments 1,288,504 1,541,295 - - 1,541,295 Accrued investment income 86,735 86,735 - - 86,735 Advances and notes receivable 72,581 72,581 - - 72,581 Total financial assets $ 13,448,823 13,680,558 $ 10,581,544 $ - 3,099,014 Financial liabilities Policyholders’ account balances $ 9,123,794 7,623,324 $ - $ - 7,623,324 Policy claims 36,492 36,492 - - 36,492 Total financial liabilities $ 9,160,286 $ 7,659,816 $ - $ - $ 7,659,816 December 31, 2018 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 6,511,652 $ 6,511,652 $ 6,511,652 $ - $ - Mortgages on real estate 1,445,030 1,457,196 - - 1,457,196 Other long-term investments 449,461 539,544 - - 539,544 Accrued investment income 76,668 76,668 - - 76,668 Advances and notes receivable 14,360 14,360 - - 14,360 Total financial assets $ 8,497,171 8,599,420 $ 6,511,652 $ - $ 2,087,768 Financial liabilities Policyholders’ account balances $ 3,165,519 $ 2,375,631 $ - $ - $ 2,375,631 Policy claims 28,306 28,306 - - 28,306 Total financial liabilities $ 3,193,825 $ 2,403,937 $ - $ - $ 2,403,937 |
7. Lease Commitment (Tables)
7. Lease Commitment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
ASU 2016-02 Transition [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future payments under operating lease arrangements accounted for under ASC Topic 842 as of June 30, 2019 are as follows: 2019 (remaining) $ 45,241 2020 91,896 2021 93,593 2022 95,006 Total operating lease payments, undiscounted $ 325,736 Less: interest (30,698 ) Lease liability, at present value $ 295,038 |
1. Organization and Significa_2
1. Organization and Significant Accounting Policies (Details) | Dec. 22, 2017 | Dec. 21, 2017 | Feb. 01, 2017USD ($) | Aug. 01, 2016USD ($) | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($)shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Apr. 02, 2017USD ($)shares | Jan. 01, 2019USD ($) |
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Investments | $ 9,998,118 | $ 9,998,118 | $ 8,559,547 | $ 8,559,547 | ||||||||
Public Stock Offering, Maximum | $ 25,000,000 | |||||||||||
Deferred Policy Acquisition Cost, Capitalization | 97,859 | $ 78,626 | 189,808 | $ 146,118 | ||||||||
Deferred Policy Acquisition Costs, Amortization Expense | 17,507 | 21,157 | 38,516 | 31,116 | ||||||||
Deferred Sale Inducement Cost, Capitalization | 151,998 | 46,804 | 278,157 | 72,979 | ||||||||
Deferred Sales Inducement Cost, Amortization Expense | 9,620 | $ 520 | 14,469 | $ 1,760 | ||||||||
Operating Lease, Payments | $ 15,335 | $ 36,027 | ||||||||||
Weighted Average Number of Shares Outstanding, Basic (in Shares) | shares | 14,801,335 | 14,863,764 | 14,821,550 | 14,863,930 | ||||||||
Operating Lease, Right-of-Use Asset | $ 295,038 | $ 295,038 | 0 | 0 | $ 331,065 | |||||||
Effective Income Tax Rate Reconciliation, Percent | 21.00% | 35.00% | ||||||||||
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 | 3.24% | 3.24% | ||||||||||
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 | 5.00% | 5.00% | ||||||||||
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 | |||||||||||
Common Class A [Member] | ||||||||||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Public Stock Offering, Shares (in Shares) | shares | 5,000,000 | |||||||||||
Mortgages [Member] | ||||||||||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 72.00% | 72.00% | ||||||||||
Texas Republic Life Insurance Company [Member] | ||||||||||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Payments to Acquire Businesses, Gross | $ 3,000,000 | $ 857,133 | 750,000 | 2,000,000 | ||||||||
Equity Method Investment, Ownership Percentage | 100.00% | |||||||||||
Investments | $ 6,607,133 | $ 6,607,133 | ||||||||||
Texas Republic Life Solutions [Member] | ||||||||||||
1. Organization and Significant Accounting Policies (Details) [Line Items] | ||||||||||||
Payments to Acquire Businesses, Gross | $ 50,000 | 100,000 | ||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | |||||||||||
Investments | $ 150,000 | $ 150,000 |
2. Investments (Details)
2. Investments (Details) - Corporate Bond Securities [Member] | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
2. Investments (Details) [Line Items] | ||
Number of Investments Below Investment Grade | 1 | 2 |
Fixed Maturity Securities Below Investment Grade, Par Value (in Dollars) | $ 100,000 | $ 250,000 |
Ratio Equal to or Greater Than 80% [Member] | Minimum [Member] | ||
2. Investments (Details) [Line Items] | ||
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 80.00% | |
Investment #2 [Member] | ||
2. Investments (Details) [Line Items] | ||
Number of Investments Below Investment Grade | 1 | |
Fixed Maturity Securities Below Investment Grade, Par Value (in Dollars) | $ 150,000 |
2. Investments (Detai
2. Investments (Details) - Schedule of Available-for-Sale Securities - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
2. Investments (Details) - Schedule of Available-for-Sale Securities [Line Items] | ||
Fixed Maturity Securities, Amortized Cost | $ 6,932,948 | $ 6,828,467 |
Fixed Maturity Securities, Gross Unrealized Gains | 391,355 | 25,916 |
Fixed Maturity Securities, Gross Unrealized Losses | 34,148 | 189,327 |
Fixed Maturity Securities, Fair Value | 7,290,155 | 6,665,056 |
Corporate Bond Securities [Member] | ||
2. Investments (Details) - Schedule of Available-for-Sale Securities [Line Items] | ||
Fixed Maturity Securities, Amortized Cost | 6,932,948 | 6,828,467 |
Fixed Maturity Securities, Gross Unrealized Gains | 391,355 | 25,916 |
Fixed Maturity Securities, Gross Unrealized Losses | 34,148 | 189,327 |
Fixed Maturity Securities, Fair Value | $ 7,290,155 | $ 6,665,056 |
2. Investments (Det_2
2. Investments (Details) - Schedule of Unrealized Loss on Investments | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
2. Investments (Details) - Schedule of Unrealized Loss on Investments [Line Items] | ||
Corporate bonds greater than 12 months, fair value | $ 470,621 | |
Corporate bonds greater than 12 months, unrealized loss | $ 34,148 | |
Corporate bonds greater than 12 months, number of securities | 4 | |
Total fixed maturity securities, fair value | $ 470,621 | $ 4,404,163 |
Total fixed maturity securities, unrealized loss | $ 34,148 | $ 189,327 |
Total fixed maturity securities, number of securities | 4 | 37 |
Corporate Bond Securities [Member] | ||
2. Investments (Details) - Schedule of Unrealized Loss on Investments [Line Items] | ||
Corporate bonds less than than 12 months, fair value | $ 0 | $ 4,321,663 |
Corporate bonds less than 12 months, unrealized loss | $ 0 | $ 170,332 |
Corporate bonds less than 12 months, number of securities | 0 | 36 |
Corporate bonds greater than 12 months, fair value | $ 82,500 | |
Corporate bonds greater than 12 months, unrealized loss | $ 18,995 | |
Corporate bonds greater than 12 months, number of securities | 1 |
2. Investments (Det_3
2. Investments (Details) - Unrealized Gain (Loss) on Investments - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Unrealized Gain (Loss) on Investments [Abstract] | |||||
Unrealized appreciation (depreciation) on available-for-sale securities | $ 357,207 | $ (163,411) | |||
Adjustment to deferred acquisition costs | (451) | 630 | |||
Deferred taxes | $ (29,890) | $ 0 | (34,848) | $ 0 | 0 |
Net unrealized appreciation (depreciation) on available-for-sale securities | $ 321,908 | $ (162,781) |
2. Investments (Det_4
2. Investments (Details) - Investments Classified by Contractual Maturity Date | Jun. 30, 2019USD ($) |
Fixed Maturities [Member] | |
2. Investments (Details) - Investments Classified by Contractual Maturity Date [Line Items] | |
Due after one year through five years, Amortized Cost | $ 2,766,442 |
Due after one year through five years, Fair Value | 2,881,136 |
Due after five years through ten years, Amortized Cost | 2,917,323 |
Due after five years through ten years, Fair Value | 3,103,016 |
Due after ten years, Amortized Cost | 1,249,183 |
Due after ten years, Fair Value | 1,306,003 |
Total , Amortized Cost | 6,932,948 |
Total , Fair Value | 7,290,155 |
Other Long-term Investments [Member] | |
2. Investments (Details) - Investments Classified by Contractual Maturity Date [Line Items] | |
Due after one year through five years, Amortized Cost | 762,605 |
Due after one year through five years, Fair Value | 937,908 |
Due after five years through ten years, Amortized Cost | 225,306 |
Due after five years through ten years, Fair Value | 321,721 |
Due after ten years, Amortized Cost | 8,987 |
Due after ten years, Fair Value | 17,085 |
Total , Amortized Cost | 1,288,504 |
Total , Fair Value | 1,541,295 |
Due in one year or less, Amortized Cost | 291,606 |
Due in one year or less, Fair Value | $ 264,581 |
2. Investments (Det_5
2. Investments (Details) - Mortgage Loan on Real Estate - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
2. Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | $ 1,419,459 | $ 1,445,030 |
Debt-to-Value Ratio, 70 to 80 Percent [Member] | ||
2. Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 76,266 | 75,947 |
Debt-to-Value Ratio, 60 to 70 Percent [Member] | ||
2. Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 563,666 | 573,506 |
Debt-to-Value Ratio, 50 to 60 Percent [Member] | ||
2. Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 665,787 | 677,169 |
Debt-to-Value Ratio, 40 to 50 Percent [Member] | ||
2. Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | $ 113,740 | $ 118,408 |
2. Investments (Det_6
2. Investments (Details) - Investment Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 177,583 | $ 81,780 | $ 322,209 | $ 145,996 |
Investment expenses | (3,936) | (5,472) | (11,991) | (10,114) |
Net investment income | 173,647 | 76,308 | 310,218 | 135,882 |
Corporate Bond Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 75,126 | 27,799 | 149,673 | 80,347 |
Other Long-term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 28,789 | 10,607 | 40,864 | 10,607 |
Mortgages [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 28,140 | 6,229 | 53,567 | 6,229 |
Short-term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 45,528 | $ 37,145 | $ 78,105 | $ 48,813 |
3. Fair Value Measurements (Det
3. Fair Value Measurements (Details) | Jun. 30, 2019 |
Mortgages [Member] | |
3. Fair Value Measurements (Details) [Line Items] | |
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 72.00% |
3. Fair Value Measure
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
3. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | $ 7,290,155 | $ 6,665,056 |
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 | 7,290,155 | 6,665,056 |
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 | 7,290,155 | 6,665,056 |
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 | 7,290,155 | 6,665,056 |
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 Measu_2
3. Fair Value Measurements (Details) - Fair Value, by Balance Sheet Grouping - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financial assets | ||||
Cash and cash equivalents | $ 10,581,544 | $ 6,511,652 | $ 9,926,158 | $ 12,578,650 |
Cash and cash equivalents | 10,581,544 | 6,511,652 | ||
Mortgages on real estate | 1,419,459 | 1,445,030 | ||
Mortgages on real estate | 1,398,403 | 1,457,196 | ||
Other long-term assets | 1,288,504 | 449,461 | ||
Other long-term assets | 1,541,295 | 539,544 | ||
Accrued investment income | 86,735 | 76,668 | ||
Accrued investment income | 86,735 | 76,668 | ||
Notes receivable | 72,581 | 14,360 | ||
Notes receivable | 72,581 | 14,360 | ||
Total financial assets | 13,448,823 | 8,497,171 | ||
Total financial assets | 13,680,558 | 8,599,420 | ||
Financial liabilities | ||||
Policyholders’ account balances | 9,123,794 | 3,165,519 | ||
Policyholders’ account balances | 7,623,324 | 2,375,631 | ||
Policy claims | 36,492 | 28,306 | ||
Policy claims | 36,492 | 28,306 | ||
Total financial liabilities | 9,160,286 | 3,193,825 | ||
Total financial liabilities | 7,659,816 | 2,403,937 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents | 10,581,544 | 6,511,652 | ||
Mortgages on real estate | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||
Notes receivable | 0 | 0 | ||
Total financial assets | 10,581,544 | 6,511,652 | ||
Financial liabilities | ||||
Policyholders’ account balances | 0 | 0 | ||
Policy claims | 0 | 0 | ||
Total financial liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Mortgages on real estate | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||
Notes receivable | 0 | 0 | ||
Total financial assets | 0 | 0 | ||
Financial liabilities | ||||
Policyholders’ account balances | 0 | 0 | ||
Policy claims | 0 | 0 | ||
Total financial liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Mortgages on real estate | 1,398,403 | 1,457,196 | ||
Other long-term assets | 1,541,295 | 539,544 | ||
Accrued investment income | 86,735 | 76,668 | ||
Notes receivable | 72,581 | 14,360 | ||
Total financial assets | 3,099,014 | 2,087,768 | ||
Financial liabilities | ||||
Policyholders’ account balances | 7,623,324 | 2,375,631 | ||
Policy claims | 36,492 | 28,306 | ||
Total financial liabilities | $ 7,659,816 | $ 2,403,937 |
4. Income Taxes (Details)
4. Income Taxes (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2017 | |
4. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards | $ 3,600,000 | $ 588,407 |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 460,664 | |
Operating Loss Carryforwards, Valuation Allowance | 849,967 | |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 1,076,082 | |
Minimum [Member] | ||
4. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards, Expiration Date 1 | 2032 | |
Maximum [Member] | ||
4. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards, Expiration Date 1 | 2037 | |
Texas Republic Life Insurance Company [Member] | ||
4. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards | $ 1,664,489 | |
Operating Loss Carryforwards, Valuation Allowance | $ 349,543 | |
Texas Republic Life Insurance Company [Member] | Minimum [Member] | ||
4. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards, Expiration Date 1 | 2031 | |
Texas Republic Life Insurance Company [Member] | Maximum [Member] | ||
4. Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards, Expiration Date 1 | 2032 |
5. Concentrations of Credit R_2
5. Concentrations of Credit Risk (Details) | Jun. 30, 2019USD ($) |
Risks and Uncertainties [Abstract] | |
Cash, FDIC Insured Amount | $ 250,000 |
Cash, Uninsured Amount | $ 934,874 |
6. Stock Incentive Plan (Detail
6. Stock Incentive Plan (Details) | 6 Months Ended |
Jun. 30, 2019shares | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 11,490 |
7. Lease Commitment (D
7. Lease Commitment (Details) - Schedule of Future Minimum Rental Payments for Operating Leases | Jun. 30, 2019USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
2019 (remaining) | $ 45,241 |
2020 | 91,896 |
2021 | 93,593 |
2022 | 95,006 |
Total operating lease payments, undiscounted | 325,736 |
Less: interest | (30,698) |
Lease liability, at present value | $ 295,038 |