Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 01, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | TEXAS REPUBLIC CAPITAL CORPORATION | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 14,813,177 | |
Amendment Flag | false | |
Entity Central Index Key | 0001560452 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-55621 | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 45-5311713 | |
No Trading Symbol Flag | true | |
Title of 12(b) Security | Common stock $0.01 par | |
Security Exchange Name | NONE | |
Entity Address, Address Line One | 13215 Bee Cave Parkway, Ste. A120 | |
Entity Address, City or Town | Austin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78738 | |
City Area Code | 512 | |
Local Phone Number | 330-0099 | |
Entity Interactive Data Current | Yes |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Available-for-sale fixed maturity securities at fair value (Amortized cost: $8,608,801 and $8,244,018 as of September 30, 2022 and December 31, 2021, respectively) | $ 7,985,016 | $ 9,042,091 |
Mortgage loans, net of allowance | 15,966,178 | 13,149,073 |
Other long-term investments | 3,634,396 | 2,980,325 |
Total investments | 27,585,590 | 25,171,489 |
Cash and cash equivalents | 7,889,620 | 8,224,914 |
Accrued investment income | 224,417 | 190,299 |
Due premium | 47,077 | 19,664 |
Deferred policy acquisition costs | 2,223,723 | 1,518,260 |
Deferred sales inducement costs | 507,602 | 716,153 |
Advances and notes receivable, net of allowance | 110,517 | 267,301 |
Leased property - right to use | 457,116 | 82,766 |
Prepaid assets | 68,461 | 14,661 |
Intangible assets, net of accumulated amortization | 287,326 | 321,806 |
Furniture and equipment, net | 11,831 | 17,505 |
Other assets | 992,363 | 837,115 |
Total assets | 40,405,643 | 37,381,933 |
Liabilities and Shareholders’ Equity | ||
Policyholders’ account balances | 28,951,508 | 28,603,861 |
Future policy benefits | 1,678,099 | 1,214,014 |
Policy claims and other benefits | 170,751 | 537,214 |
Liability for deposit-type contracts | 285,838 | 68,770 |
Other policyholder liabilities | 12,239 | 57,178 |
Total policy liabilities | 31,098,435 | 30,481,037 |
Lease liability | 457,116 | 82,766 |
Other liabilities | 260,014 | 206,161 |
Total liabilities | 31,815,565 | 30,769,964 |
Shareholders’ equity | ||
Common stock, par value $.01 per share, 25,000,000 shares authorized, 14,867,097 issued as of September 30, 2022 and December 31, 2021, 14,813,177 and 14,801,027 outstanding as of September 30, 2022 and December 31, 2021, respectively, and 733,442 subscribed as of September 30, 2022 | 156,005 | 148,671 |
Additional paid-in capital | 21,854,321 | 17,538,618 |
Treasury stock, at cost (53,920 and 66,070 shares as of September 30, 2022 and December 31, 2021, respectively) | (52,130) | (64,280) |
Accumulated other comprehensive income (loss) | (623,785) | 798,073 |
Accumulated deficit | (12,744,333) | (11,809,113) |
Total shareholders’ equity | 8,590,078 | 6,611,969 |
Total liabilities and shareholders’ equity | $ 40,405,643 | $ 37,381,933 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parentheticals) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Available-for-sale fixed maturity securities Amortized cost (in Dollars) | $ 8,608,801 | $ 8,244,018 |
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 | 14,813,177 | 14,867,097 |
Common stock, shares outstanding | 14,813,177 | 14,801,027 |
Common stock, shares subscribed | 733,442 | |
Treasury stock, shares | 53,920 | 66,070 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Premiums and other considerations | $ 451,366 | $ 129,557 | $ 1,388,895 | $ 460,278 |
Net investment income | 420,901 | 256,010 | 1,229,212 | 848,754 |
Net realized gains on investments | 0 | 13,104 | 17,635 | 19,783 |
Commission income | 427,048 | 124,799 | 494,017 | 190,006 |
Total revenues | 1,299,315 | 523,470 | 3,129,759 | 1,518,821 |
Benefits, claims and expenses | ||||
Increase in future policy benefits | 69,654 | 192,724 | 344,185 | 287,178 |
Death and other benefits | 72,510 | 125,044 | 290,126 | 85,709 |
Interest credited to policyholders | 293,086 | 180,255 | 829,507 | 837,352 |
Total benefits and claims | 435,250 | 498,023 | 1,463,818 | 1,210,239 |
Policy acquisition costs deferred | (373,834) | (135,999) | (1,064,379) | (353,948) |
Policy acquisition costs amortized | 102,361 | 24,294 | 358,916 | 153,143 |
Commissions | 411,321 | 167,494 | 1,185,922 | 490,823 |
Salaries and employee benefits | 475,219 | 320,958 | 1,243,214 | 972,772 |
Office rent | 23,841 | 23,764 | 69,947 | 70,574 |
Third-party administration fees | 634 | 51,260 | 86,623 | 97,652 |
Travel, meals, and entertainment | (7,326) | 13,906 | 40,260 | 42,329 |
Professional fees | 86,769 | 255,135 | 402,574 | 518,063 |
Other general and administrative expenses | 68,237 | 59,274 | 278,084 | 204,926 |
Total benefits, claims and expenses | 1,222,472 | 1,278,109 | 4,064,979 | 3,406,573 |
Net income (loss) | $ 76,843 | $ (754,639) | $ (935,220) | $ (1,887,752) |
Net income (loss) per common share outstanding (in Dollars per share) | $ 0.01 | $ (0.05) | $ (0.06) | $ (0.13) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 76,843 | $ (754,639) | $ (935,220) | $ (1,887,752) |
Other comprehensive loss | ||||
Total net unrealized losses arising during the period | (317,845) | (79,088) | (1,404,223) | (195,484) |
Less net realized investment gains | 0 | 13,104 | 17,635 | 19,783 |
Net unrealized investment losses | (317,845) | (92,192) | (1,421,858) | (215,267) |
Total other comprehensive loss | (317,845) | (92,192) | (1,421,858) | (215,267) |
Total comprehensive loss | $ (241,002) | $ (846,831) | $ (2,357,078) | $ (2,103,019) |
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, 2020 | $ 148,671 | $ 17,538,618 | $ (86,600) | $ 1,166,306 | $ (9,724,528) | $ 9,042,467 |
Treasury shares issued | 3,320 | 3,320 | ||||
Other comprehensive income | (215,267) | (215,267) | ||||
Net loss | (1,887,752) | (1,887,752) | ||||
Balance at Sep. 30, 2021 | 148,671 | 17,538,618 | (83,280) | 951,039 | (11,612,280) | 6,942,768 |
Balance at Jun. 30, 2021 | 148,671 | 17,538,618 | (83,280) | 1,043,231 | (10,857,641) | 7,789.599 |
Other comprehensive income | (92,192) | (92,192) | ||||
Net loss | (754,639) | (754,639) | ||||
Balance at Sep. 30, 2021 | 148,671 | 17,538,618 | (83,280) | 951,039 | (11,612,280) | 6,942,768 |
Balance at Dec. 31, 2021 | 148,671 | 17,538,618 | (64,280) | 798,073 | (11,809,113) | 6,611,969 |
Common stock shares subscribed | 7,334 | 4,315,703 | 4,323,037 | |||
Treasury shares issued | 12,150 | 12,150 | ||||
Other comprehensive income | (1,421,858) | (1,421,858) | ||||
Net loss | (935,220) | (935,220) | ||||
Balance at Sep. 30, 2022 | 156,005 | 21,854,321 | (52,130) | (623,785) | (12,744,333) | 8,590,078 |
Balance at Jun. 30, 2022 | 150,296 | 18,512,233 | (52,130) | (305,940) | (12,821,176) | 5,483,283 |
Common stock shares subscribed | 5,709 | 3,342,088 | 3,347,797 | |||
Other comprehensive income | (317,845) | (317,845) | ||||
Net loss | 76,843 | 76,843 | ||||
Balance at Sep. 30, 2022 | $ 156,005 | $ 21,854,321 | $ (52,130) | $ (623,785) | $ (12,744,333) | $ 8,590,078 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Operating activities | |||||
Net loss | $ 76,843 | $ (754,639) | $ (935,220) | $ (1,887,752) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Net accretion of discount and amortization of premium on investments | (215,086) | (207,112) | |||
Net realized capital gains | 0 | (13,104) | (17,635) | (19,783) | |
Provision for depreciation and amortization | 40,153 | 9,027 | |||
Policy acquisition costs deferred | (373,834) | (135,999) | (1,064,379) | (353,948) | |
Policy acquisition costs amortized | 102,361 | 24,294 | 358,916 | 153,143 | |
Amortization of mortgage loan origination fees | 35,800 | 41,139 | |||
Provision for estimated mortgage loan losses | 14,336 | 976 | |||
Provision for estimated uncollectible advances and notes receivable | (4,313) | (25,696) | |||
Interest credited to policyholders | 293,086 | 180,255 | 829,507 | 837,352 | |
Non-cash salary expense | 12,150 | 3,320 | |||
Change in assets and liabilities: | |||||
Accrued investment income | (34,118) | 6,520 | |||
Due premium | (27,413) | (6,002) | |||
Advances and notes receivable | 161,097 | 25,906 | |||
Prepaid assets | (53,800) | (45,978) | |||
Other assets | (126,243) | (320,443) | |||
Future policy benefits | 464,085 | 457,166 | |||
Policy claims | (366,463) | (277,075) | |||
Other policy liabilities | (44,939) | (92,726) | |||
Other liabilities | 53,853 | 208,945 | |||
Net cash used in operating activities | (919,712) | (1,493,021) | |||
Investing activities | |||||
Purchases of furniture and equipment | 0 | (2,381) | |||
Purchases of available for sale securities | (1,461,639) | (12,122) | |||
Sales of available for sale securities | 1,111,464 | 502,236 | $ 1,407,864 | ||
Purchases of mortgage loans | (12,526,255) | (2,289,337) | |||
Payments on mortgage loans | 9,689,967 | 2,119,193 | |||
Purchase of other long-term investments | (1,256,050) | 0 | |||
Payments on other long-term investments | 789,139 | 683,213 | |||
Net cash provided by (used in) investing activities | (3,653,374) | 1,000,802 | |||
Financing activities | |||||
Proceeds from the subscription of common stock | 4,294,033 | 0 | |||
Policyholder deposits | 434,609 | 2,678,963 | |||
Policyholder withdrawals | (707,918) | (107,082) | |||
Deposit-type contracts - deposits | 255,517 | 0 | |||
Deposit-type contracts - withdrawals | (38,449) | (5,273) | |||
Net cash provided by financing activities | 4,237,792 | 2,566,608 | |||
(Decrease) increase in cash and cash equivalents | (335,294) | 2,074,389 | |||
Cash and cash equivalents, beginning of period | 8,224,914 | 10,985,917 | 10,985,917 | ||
Cash and cash equivalents, end of period | $ 7,889,620 | $ 13,060,306 | 7,889,620 | 13,060,306 | $ 8,224,914 |
Supplemental disclosure of non-cash financing activities | |||||
Treasury stock issued as compensation | 12,150 | 3,320 | |||
Subscriptions receivable for common stock | $ 29,004 | $ 0 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
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”), Texas Republic Life Solutions, Inc. (“TRLS”), and Axis Insurance Solutions, LLC (“AIS”). 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. In 2018 the Company made additional capital contributions totaling $2,750,000 for the entire year. In 2019 the Company made two more capital contributions to TRLIC. The first contribution consisted of mortgage loans valued at $857,133 and the second one was a $1,300,000 cash contribution. In 2021, the Company made additional total capital contributions of $2,100,000. During the first nine months of 2022, the Company made $1,500,000 in total capital contributions. Total capitalization of TRLIC was $11,507,133 at September 30, 2022. TRLS, a life and health insurance agency, was incorporated February 1, 2017. The Company capitalized TRLS with $50,000 and owns 100% of TRLS. In 2018 and 2020 the Company made additional capital contributions of $100,000 and $200,000, respectively. In 2021, the Company made additional total capital contributions of $50,000. During the first nine months of 2022, the Company made $150,000 in total capital contributions. Total capitalization of TRLS was $550,000 at September 30, 2022. AIS, a property & casualty insurance agency, was formed on April 6, 2021. The Company capitalized AIS with $25,000 and owns 100% of AIS. 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 ended on April 2, 2017. Through this offering the Company raised an additional $10,010,485 and incurred another $1,444,127 of offering costs through the sale of 2,002,097 shares of common stock. On May 31, 2022, the Company began a rights offering to existing shareholders only. The rights offering ended on September 30, 2022. Through this rights offering, the Company raised $4,400,652 and incurred $77,615 of offering costs through the subscription of 733,442 shares of its 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 nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ended December 31, 2022 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, 2021. 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 (loss). 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 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. The Company’s mortgage loan portfolio is comprised entirely of residential properties with loan to appraised value ratios below 90%. Mortgage loans are carried at current book value. A mortgage loan allowance has been established for any unforeseen losses using an industry approach, which establishes a reserve for possible loan losses charged to expense which represents, in the Company’s judgement, the known and estimated credit losses existing in the loan portfolio. This reserve reduces the carrying value of investment in mortgage loans on the consolidated statement of financial position. The fair values for mortgage loans are estimated using discounted cash flow analysis. The discount rate used to calculate fair values was indexed to the LIBOR yield curve adjusted for an appropriate credit spread. The Company’s other long-term investments are comprised of lottery prize cash flows holdings held at amortized cost. These investments 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 $1,064,379 of DAC deferred and $358,916 of DAC amortized for the nine months ended September 30, 2022. For the three months ended September 30, 2022, there was $373,834 of DAC deferred and $102,361 of DAC amortized. There was $353,948 of DAC deferred and $153,143 of DAC amortized for the nine months ended September 30, 2021. For the three months ended September 30, 2021, there was $135,999 of DAC deferred and $24,294 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 bonus period on a straight-line basis. The amount deferred is based on the difference between the fund value with the bonus and the fund value without the bonus. There was $507,602 and $716,153 of SIC deferred at September 30, 2022 and December 31, 2021, respectively. There was $0 of SIC deferred and $208,551 of SIC amortized for the nine months ended September 30, 2022. For the three months ended September 30, 2022, there was $0 of SIC deferred and $61,756 of SIC amortized. There was $86,341 of SIC deferred and $222,758 SIC amortized for the nine months ended September 30, 2021. For the three months ended September 30, 2021, there was $15,473 of SIC deferred and $64,100 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. Management had an allowance for possible uncollectable agent balances of $49,672 and $53,985 as of September 30, 2022 and December 31, 2021, respectively. 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 had an original term greater than one year, and the Company recognizes on the balance sheet 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 has a lease asset and liability of $457,116 as of September 30, 2022 compared to $82,766 as of December 31, 2021. Intangible assets Intangible assets are stated at cost less accumulated amortization and reflect amounts paid for the Company’s computer software costs during the application development stage. The software costs placed in service during 2021 are amortized using the straight-line method over the seven-year estimated useful life of the software. The asset is tested for impairment at least annually. Subsequent modifications or upgrades to internal-use software are capitalized only to the extent that additional functionality is provided. Furniture and Equipment Furniture and equipment are carried at cost less accumulated depreciation or amortization. Office furniture, equipment and EDP equipment are recorded at cost or fair value at acquisition less accumulated depreciation or amortization using the straight-line method over a period that approximates the estimated useful life of the respective assets of three to seven years. Expenditures for improvements are capitalized, and expenditures for maintenance and repairs are expensed as incurred. Upon sale or retirement, the cost and related accumulated depreciation and amortization is removed from the related accounts, and the resulting gain or loss, if any, is reflected in income. 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 1.55% to 5.125%. 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. Actual experience may emerge differently from that originally estimated. Any such difference would be recognized in the current year’s consolidated statement of operations. 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 basis. 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. The weighted average common shares outstanding and subscribed were 14,962,247 and 14,780,035 for the nine months ended September 30, 2022 and 2021, respectively. The weighted average common shares outstanding and subscribed were 15,242,473 and 14,782,027 for the three months ended September 30, 2022 and 2021, respectively. Related Party Transactions The Company entered into an agreement with First Trinity Financial Corporation (FTFC) where FTFC will use its resources to source mortgage loans 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 mortgage loans and lottery bonds that were purchased by the Company in 2020 were obtained through this agreement. The Chairman of the Company is also the Chairman, President, and Chief Executive Officer of FTFC. The Company paid $12,665 to FTFC for the nine months ending September 30, 2022. No such purchases were made or fees paid for the year ending December 31, 2021. The Company entered into a coinsurance reinsurance agreement with Family Benefit Life Insurance Company (FBLIC), which is a subsidiary of FTFC. The Company will cede a portion of new business from our TrueFlex product related to specific groups to FBLIC as mutually agreed upon in advance. This new agreement became effective on January 1, 2022, and as of September 30, 2022 there has been three groups covered under this agreement. 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. The Company did not identify any subsequent events requiring recognition or disclosure. Recently Issued Accounting Pronouncements In September 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-12 Financial Services-Insurance (Topic 944) Targeted Improvements to the Accounting for Long-Duration Contracts |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Investment [Text Block] | 2. Investments Fixed Maturity Securities Available-For-Sale Investments in fixed maturity securities available-for-sale as of September 30, 2022 and December 31, 2021 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2022 (Unaudited) Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 7,145,725 $ - $ 622,324 $ 6,523,401 U.S. Treasury securities 1,463,076 - 1,461 1,461,615 Total fixed maturity securities $ 8,608,801 $ - $ 623,785 $ 7,985,016 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2021 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 8,244,018 $ 798,073 $ - $ 9,042,091 U.S. Treasury securities - - - - Total fixed maturity securities $ 8,244,018 $ 798,073 $ - $ 9,042,091 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 September 30, 2022 and December 31, 2021 are summarized as follows: Unrealized Number of September 30, 2022 (Unaudited) Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ 6,523,401 $ 622,324 49 U.S. Treasury securities 1,461,615 1,461 1 Greater than 12 months Corporate bonds - - - Total fixed maturity securities $ 7,985,016 623,785 50 Unrealized Number of December 31, 2021 Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ - $ - - Greater than 12 months Corporate bonds - - - Total fixed maturity securities $ - $ - - As of September 30, 2022, the fixed maturity securities in a less than 12-month loss position had an average fair value to amortized cost ratio of 92.8%. As of December 31, 2021, there were no fixed maturity securities in an unrealized loss position. As of September 30, 2022 and December 31, 2021, 0% of total fair value of fixed maturity securities were below investment grade as rated by taking the median of Fitch’s, Moody’s, and Standard and Poor’s ratings, respectively. 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 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. Based on management’s review, the Company experienced no other-than-temporary impairments during the nine months ended September 30, 2022 or during the year ended December 31, 2021. Management believes that the Company will fully recover its cost basis in the securities held as of September 30, 2022, 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) September 30, 2022 December 31, 2021 Unrealized appreciation (depreciation) on available-for-sale securities $ (623,785 ) $ 798,073 Net unrealized appreciation (depreciation) on available-for-sale securities $ (623,785 ) $ 798,073 The amortized cost and fair value of fixed maturity available-for-sale securities as of September 30, 2022, by contractual maturity, are summarized as follows: (Unaudited) Amortized Cost Fair Value Due in one year or less $ 2,262,234 $ 2,258,039 Due after one year through five years 3,048,159 2,913,164 Due after five years through ten years 1,353,281 1,224,076 Due after ten years 1,945,127 1,589,737 Total fixed maturity securities $ 8,608,801 $ 7,985,016 For the nine months ended September 30, 2022, the Company received $1,111,464 of proceeds from sales and maturities of investments in available-for-sale securities and had $20,643 and $3,008 of gross gains and gross losses realized, respectively. For the year ended December 31, 2021, the Company received $1,407,864 of proceeds from sales and maturities of investments in available-for-sale securities and had $84,088 of gross gains. 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. The amortized cost and fair value of other long-term investments (which consists of lottery prize cash flows) as of September 30, 2022, by contractual maturity, are summarized as follows: (Unaudited) Amortized Cost Fair Value Due in one year or less $ 1,026,363 $ 1,070,343 Due after one year through five years 2,259,859 2,410,585 Due after five years through ten years 342,020 379,898 Due after ten years 6,154 7,207 Total other long-term investments $ 3,634,396 $ 3,868,033 Other long-term investments by geographic distribution: (Unaudited) September 30, 2022 % December 31, 2021 % California $ 511,316 14.1 % $ 405,727 13.6 % Florida 317,042 8.7 231,746 7.8 Georgia 299,303 8.2 269,316 9.0 Indiana 179,642 4.9 285,263 9.6 Massachusetts 1,249,411 34.4 712,006 23.9 New York 633,693 17.5 550,414 18.5 Ohio 124,630 3.4 141,692 4.7 Oregon 89,202 2.5 108,798 3.7 Pennsylvania 230,157 6.3 275,363 9.2 Total $ 3,634,396 100.0 % $ 2,980,325 100.0 % 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 September 30, 2022 and December 31, 2021 are summarized as follows: Loan-To-Value-Ratio (Unaudited) September 30, 2022 December 31, 2021 80% to 90% $ 542,351 $ 573,500 70% to 80% 7,051,001 4,409,139 60% to 70% 5,744,753 5,796,932 50% to 60% 1,943,761 1,872,626 Less than 50% 684,312 496,876 Total $ 15,966,178 $ 13,149,073 Mortgage loans by geographic distribution: State (Unaudited) September 30, 2022 % December 31, 2021 % Alabama $ 979,085 6.1 % $ 237,805 1.8 % Arkansas 210,194 1.3 210,194 1.6 California 182,958 1.2 185,403 1.4 Colorado - - 200,175 1.5 Connecticut - - 217,559 1.7 Florida 496,138 3.1 830,643 6.3 Georgia 892,652 5.6 485,060 3.7 Illinois 735,514 4.6 684,694 5.2 Indiana 495,905 3.1 245,821 1.9 Kansas 189,100 1.2 87,063 0.7 Kentucky 101,290 0.6 104,631 0.8 Louisiana 309,045 1.9 95,809 0.7 Maryland 239,297 1.5 239,298 1.8 Michigan 182,941 1.2 182,941 1.4 Missouri 2,932,855 18.3 3,307,900 25.2 North Carolina 530,957 3.3 248,889 1.9 Ohio - - 242,034 1.9 Pennsylvania 398,667 2.5 446,327 3.4 South Carolina 330,900 2.1 200,899 1.5 Tennessee 5,537,260 34.7 2,752,328 20.9 Texas 1,034,100 6.5 1,801,152 13.7 Wisconsin 187,320 1.2 142,448 1.0 Total $ 15,966,178 100.0 % $ 13,149,073 100.0 % There were 2 mortgage loans with a principal balance of $117,991 that were 90 days or more past due and still accruing interest as of September 30, 2022. One of those 2 mortgage loans had a principal balance of $42,609 and was in the process of foreclosure as of September 30, 2022. The Company expects to fully recover the principal balance outstanding plus any accrued interest along with all fees and expenses. There were 3 mortgage loans with a principal balance of $190,049 that were 90 days or more past due and still accruing interest as of December 31, 2021. The Company had a mortgage loan allowance of $79,911 and $65,575 as of September 30, 2022 and December 31, 2021, respectively. (Unaudited) September 30, 2022 December 31, 2021 Beginning of year: mortgage loan allowance balance $ 65,575 $ 37,963 Current year change in provision of estimated mortgage loan losses 14,336 27,612 End of year: mortgage loan allowance balance $ 79,911 $ 65,575 Major categories of net investment income for the three and nine months ended September 30, 2022 and 2021 are summarized as follows: (Unaudited) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Fixed maturity securities $ 77,001 $ 98,347 $ 240,160 $ 309,906 Other long-term assets 66,612 68,423 187,159 190,982 Mortgage loans 283,821 122,645 860,686 425,502 Short-term and other investments 5,683 201 106,064 601 Gross investment income 433,117 289,616 1,394,069 926,991 Investment expenses (12,216 ) (33,606 ) (164,857 ) (78,237 ) Net investment income $ 420,901 $ 256,010 $ 1,229,212 $ 848,754 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and December 31, 2021 are summarized as follows: September 30, 2022 (Unaudited) Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 6,523,401 $ - $ 6,523,401 U.S. Treasury securities - 1,461,615 - 1,461,615 Total fixed maturity securities $ - $ 7,985,016 $ - $ 7,985,016 December 31, 2021 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 9,042,091 $ - $ 9,042,091 U.S. Treasury securities - - - - Total fixed maturity securities $ - $ 9,042,091 $ - $ 9,042,091 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 and U.S. treasury securities. The Company’s fixed maturity securities available-for-sale portfolio is highly liquid and allows for substantially all 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 September 30, 2022 and December 31, 2021 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: September 30, 2022 (Unaudited) Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 7,889,620 $ 7,889,620 $ 7,889,620 $ - $ - Mortgages on real estate 15,966,178 15,300,054 - - 15,300,054 Other long-term investments 3,634,396 3,868,033 - - 3,868,033 Accrued investment income 224,417 224,417 - - 224,417 Advances and notes receivable 110,517 110,517 - - 110,517 Total financial assets $ 27,825,128 $ 27,392,641 $ 7,889,620 $ - $ 19,503,021 Financial liabilities Policyholders’ account balances $ 28,951,508 $ 18,343,078 $ - $ - $ 18,343,078 Policy claims and other benefits 170,751 170,751 - - 170,751 Total financial liabilities $ 29,122,259 $ 18,513,829 $ - $ - $ 18,513,829 December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 8,224,914 $ 8,224,914 $ 8,224,914 $ - $ - Mortgages on real estate 13,149,073 13,496,013 - - 13,496,013 Other long-term investments 2,980,325 3,367,307 - - 3,367,307 Accrued investment income 190,299 190,299 - - 190,299 Advances and notes receivable 267,301 267,301 - - 267,301 Total financial assets $ 24,811,912 $ 25,545,834 $ 8,224,914 $ - $ 17,320,920 Financial liabilities Policyholders’ account balances $ 28,603,861 $ 26,098,410 $ - $ - $ 26,098,410 Policy claims and other benefits 537,214 537,214 - - 537,214 Total financial liabilities $ 29,141,075 $ 26,635,624 $ - $ - $ 26,635,624 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. Mortgage loans on Real Estate The Company’s mortgage loan portfolio is comprised of residential properties with loan to appraised value ratios at or below 90%. 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 and other benefits The carrying amounts reported for these liabilities approximate their fair value. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 4. Income Taxes The Company files a consolidated return with its subsidiaries TRLS and AIS. 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. Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax basis of assets and liabilities using statutory rates. A valuation allowance is recorded against deferred tax assets if it is more likely than not that some or all of the deferred tax assets will not be realized. The Company cannot currently conclude that it is more likely than not that the remaining deferred tax assets will be utilized. Therefore, the Company’s deferred tax assets have been fully offset by a valuation allowance. As a result, our effective tax rate from continuing operations was zero percent for the quarter ended September 30, 2022. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences will become deductible. For the purpose of federal income tax, the Company has net operating loss carryforwards as of September 30, 2022, which expire between 2031 and 2037. Net operating losses generated in 2018 and beyond do not expire and annual utilizations are limited to 80% of taxable income. The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law on March 27, 2020, repeals the 80% limitation for taxable years beginning before January 1, 2021. 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 2019 through 2021 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. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 9 Months Ended |
Sep. 30, 2022 | |
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 $2,926,946 as of September 30, 2022. 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. |
Stock Incentive Plan
Stock Incentive Plan | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement [Text Block] | 6. Stock Incentive Plan The Company’s life subsidiary, TRLIC had an Agent Stock Incentive Plan (“ASIP”). The plan was approved in August 2018 by the Texas State Securities Board. The plan was suspended by the Company in April 2022. The plan awarded 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, 2021 are based on production for the period of January through December 2021. 12,150 shares were issued in 2022. The ASIP issued 7,150 shares in 2022 based on 2021 production. The ASIP issued 3,320 shares in 2021 based on 2020 production. In addition, the Company granted 5,000 and 19,000 total shares in 2022 and 2021, respectively, as part of employment agreements and/or bonuses to employees. |
Lease Commitment
Lease Commitment | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Commitments Disclosure [Text Block] | 7. Lease Commitment The Company rents office space for its administrative operations under an agreement that expires in December 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. On September 21, 2022, the Company exercised its renewal option and extended its lease for an additional five years with the new lease term ending on November 30, 2027. Therefore, the renewal terms have been 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 September 30, 2022 are as follows: 2022 (remaining) $ 24,073 2023 95,922 2024 98,810 2025 101,773 2026 104,831 2027 98,723 Total operating lease payments, undiscounted $ 524,132 Less: interest (67,016 ) Lease liability, at present value $ 457,116 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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 nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ended December 31, 2022 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, 2021. |
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, Comparability Adjustment [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 (loss). 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 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. The Company’s mortgage loan portfolio is comprised entirely of residential properties with loan to appraised value ratios below 90%. Mortgage loans are carried at current book value. A mortgage loan allowance has been established for any unforeseen losses using an industry approach, which establishes a reserve for possible loan losses charged to expense which represents, in the Company’s judgement, the known and estimated credit losses existing in the loan portfolio. This reserve reduces the carrying value of investment in mortgage loans on the consolidated statement of financial position. The fair values for mortgage loans are estimated using discounted cash flow analysis. The discount rate used to calculate fair values was indexed to the LIBOR yield curve adjusted for an appropriate credit spread. The Company’s other long-term investments are comprised of lottery prize cash flows holdings held at amortized cost. These investments 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 $1,064,379 of DAC deferred and $358,916 of DAC amortized for the nine months ended September 30, 2022. For the three months ended September 30, 2022, there was $373,834 of DAC deferred and $102,361 of DAC amortized. There was $353,948 of DAC deferred and $153,143 of DAC amortized for the nine months ended September 30, 2021. For the three months ended September 30, 2021, there was $135,999 of DAC deferred and $24,294 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 bonus period on a straight-line basis. The amount deferred is based on the difference between the fund value with the bonus and the fund value without the bonus. There was $507,602 and $716,153 of SIC deferred at September 30, 2022 and December 31, 2021, respectively. There was $0 of SIC deferred and $208,551 of SIC amortized for the nine months ended September 30, 2022. For the three months ended September 30, 2022, there was $0 of SIC deferred and $61,756 of SIC amortized. There was $86,341 of SIC deferred and $222,758 SIC amortized for the nine months ended September 30, 2021. For the three months ended September 30, 2021, there was $15,473 of SIC deferred and $64,100 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. Management had an allowance for possible uncollectable agent balances of $49,672 and $53,985 as of September 30, 2022 and December 31, 2021, respectively. |
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 had an original term greater than one year, and the Company recognizes on the balance sheet 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 has a lease asset and liability of $457,116 as of September 30, 2022 compared to $82,766 as of December 31, 2021. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible assets Intangible assets are stated at cost less accumulated amortization and reflect amounts paid for the Company’s computer software costs during the application development stage. The software costs placed in service during 2021 are amortized using the straight-line method over the seven-year estimated useful life of the software. The asset is tested for impairment at least annually. Subsequent modifications or upgrades to internal-use software are capitalized only to the extent that additional functionality is provided. |
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 are recorded at cost or fair value at acquisition less accumulated depreciation or amortization using the straight-line method over a period that approximates the estimated useful life of the respective assets of three to seven years. Expenditures for improvements are capitalized, and expenditures for maintenance and repairs are expensed as incurred. Upon sale or retirement, the cost and related accumulated depreciation and amortization is removed from the related accounts, and the resulting gain or loss, if any, is reflected in income. |
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 1.55% to 5.125%. |
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. Actual experience may emerge differently from that originally estimated. Any such difference would be recognized in the current year’s consolidated statement of operations. |
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 basis. |
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. The weighted average common shares outstanding and subscribed were 14,962,247 and 14,780,035 for the nine months ended September 30, 2022 and 2021, respectively. The weighted average common shares outstanding and subscribed were 15,242,473 and 14,782,027 for the three months ended September 30, 2022 and 2021, respectively. |
Related Party Transactions, Policy [Policy Text Block] | Related Party Transactions The Company entered into an agreement with First Trinity Financial Corporation (FTFC) where FTFC will use its resources to source mortgage loans 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 mortgage loans and lottery bonds that were purchased by the Company in 2020 were obtained through this agreement. The Chairman of the Company is also the Chairman, President, and Chief Executive Officer of FTFC. The Company paid $12,665 to FTFC for the nine months ending September 30, 2022. No such purchases were made or fees paid for the year ending December 31, 2021. The Company entered into a coinsurance reinsurance agreement with Family Benefit Life Insurance Company (FBLIC), which is a subsidiary of FTFC. The Company will cede a portion of new business from our TrueFlex product related to specific groups to FBLIC as mutually agreed upon in advance. This new agreement became effective on January 1, 2022, and as of September 30, 2022 there has been three groups covered under this agreement. |
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. The Company did not identify any subsequent events requiring recognition or disclosure. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In September 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-12 Financial Services-Insurance (Topic 944) Targeted Improvements to the Accounting for Long-Duration Contracts |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Debt Securities, Available-for-Sale [Table Text Block] | Investments in fixed maturity securities available-for-sale as of September 30, 2022 and December 31, 2021 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2022 (Unaudited) Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 7,145,725 $ - $ 622,324 $ 6,523,401 U.S. Treasury securities 1,463,076 - 1,461 1,461,615 Total fixed maturity securities $ 8,608,801 $ - $ 623,785 $ 7,985,016 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2021 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 8,244,018 $ 798,073 $ - $ 9,042,091 U.S. Treasury securities - - - - Total fixed maturity securities $ 8,244,018 $ 798,073 $ - $ 9,042,091 |
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 September 30, 2022 and December 31, 2021 are summarized as follows: Unrealized Number of September 30, 2022 (Unaudited) Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ 6,523,401 $ 622,324 49 U.S. Treasury securities 1,461,615 1,461 1 Greater than 12 months Corporate bonds - - - Total fixed maturity securities $ 7,985,016 623,785 50 Unrealized Number of December 31, 2021 Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ - $ - - Greater than 12 months Corporate bonds - - - Total fixed maturity securities $ - $ - - |
Unrealized Gain (Loss) on Investments [Table Text Block] | Net unrealized gains (losses) included in accumulated other comprehensive income for investments classified as available-for-sale are summarized as follows: (Unaudited) September 30, 2022 December 31, 2021 Unrealized appreciation (depreciation) on available-for-sale securities $ (623,785 ) $ 798,073 Net unrealized appreciation (depreciation) on available-for-sale securities $ (623,785 ) $ 798,073 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of fixed maturity available-for-sale securities as of September 30, 2022, by contractual maturity, are summarized as follows: (Unaudited) Amortized Cost Fair Value Due in one year or less $ 2,262,234 $ 2,258,039 Due after one year through five years 3,048,159 2,913,164 Due after five years through ten years 1,353,281 1,224,076 Due after ten years 1,945,127 1,589,737 Total fixed maturity securities $ 8,608,801 $ 7,985,016 (Unaudited) Amortized Cost Fair Value Due in one year or less $ 1,026,363 $ 1,070,343 Due after one year through five years 2,259,859 2,410,585 Due after five years through ten years 342,020 379,898 Due after ten years 6,154 7,207 Total other long-term investments $ 3,634,396 $ 3,868,033 |
Investment Holdings, Schedule of Investments [Table Text Block] | Other long-term investments by geographic distribution: (Unaudited) September 30, 2022 % December 31, 2021 % California $ 511,316 14.1 % $ 405,727 13.6 % Florida 317,042 8.7 231,746 7.8 Georgia 299,303 8.2 269,316 9.0 Indiana 179,642 4.9 285,263 9.6 Massachusetts 1,249,411 34.4 712,006 23.9 New York 633,693 17.5 550,414 18.5 Ohio 124,630 3.4 141,692 4.7 Oregon 89,202 2.5 108,798 3.7 Pennsylvania 230,157 6.3 275,363 9.2 Total $ 3,634,396 100.0 % $ 2,980,325 100.0 % State (Unaudited) September 30, 2022 % December 31, 2021 % Alabama $ 979,085 6.1 % $ 237,805 1.8 % Arkansas 210,194 1.3 210,194 1.6 California 182,958 1.2 185,403 1.4 Colorado - - 200,175 1.5 Connecticut - - 217,559 1.7 Florida 496,138 3.1 830,643 6.3 Georgia 892,652 5.6 485,060 3.7 Illinois 735,514 4.6 684,694 5.2 Indiana 495,905 3.1 245,821 1.9 Kansas 189,100 1.2 87,063 0.7 Kentucky 101,290 0.6 104,631 0.8 Louisiana 309,045 1.9 95,809 0.7 Maryland 239,297 1.5 239,298 1.8 Michigan 182,941 1.2 182,941 1.4 Missouri 2,932,855 18.3 3,307,900 25.2 North Carolina 530,957 3.3 248,889 1.9 Ohio - - 242,034 1.9 Pennsylvania 398,667 2.5 446,327 3.4 South Carolina 330,900 2.1 200,899 1.5 Tennessee 5,537,260 34.7 2,752,328 20.9 Texas 1,034,100 6.5 1,801,152 13.7 Wisconsin 187,320 1.2 142,448 1.0 Total $ 15,966,178 100.0 % $ 13,149,073 100.0 % |
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 September 30, 2022 and December 31, 2021 are summarized as follows: Loan-To-Value-Ratio (Unaudited) September 30, 2022 December 31, 2021 80% to 90% $ 542,351 $ 573,500 70% to 80% 7,051,001 4,409,139 60% to 70% 5,744,753 5,796,932 50% to 60% 1,943,761 1,872,626 Less than 50% 684,312 496,876 Total $ 15,966,178 $ 13,149,073 |
Financing Receivable, Past Due [Table Text Block] | There were 2 mortgage loans with a principal balance of $117,991 that were 90 days or more past due and still accruing interest as of September 30, 2022. One of those 2 mortgage loans had a principal balance of $42,609 and was in the process of foreclosure as of September 30, 2022. The Company expects to fully recover the principal balance outstanding plus any accrued interest along with all fees and expenses. There were 3 mortgage loans with a principal balance of $190,049 that were 90 days or more past due and still accruing interest as of December 31, 2021. The Company had a mortgage loan allowance of $79,911 and $65,575 as of September 30, 2022 and December 31, 2021, respectively. (Unaudited) September 30, 2022 December 31, 2021 Beginning of year: mortgage loan allowance balance $ 65,575 $ 37,963 Current year change in provision of estimated mortgage loan losses 14,336 27,612 End of year: mortgage loan allowance balance $ 79,911 $ 65,575 |
Investment Income [Table Text Block] | Major categories of net investment income for the three and nine months ended September 30, 2022 and 2021 are summarized as follows: (Unaudited) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Fixed maturity securities $ 77,001 $ 98,347 $ 240,160 $ 309,906 Other long-term assets 66,612 68,423 187,159 190,982 Mortgage loans 283,821 122,645 860,686 425,502 Short-term and other investments 5,683 201 106,064 601 Gross investment income 433,117 289,616 1,394,069 926,991 Investment expenses (12,216 ) (33,606 ) (164,857 ) (78,237 ) Net investment income $ 420,901 $ 256,010 $ 1,229,212 $ 848,754 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and December 31, 2021 are summarized as follows: September 30, 2022 (Unaudited) Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 6,523,401 $ - $ 6,523,401 U.S. Treasury securities - 1,461,615 - 1,461,615 Total fixed maturity securities $ - $ 7,985,016 $ - $ 7,985,016 December 31, 2021 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 9,042,091 $ - $ 9,042,091 U.S. Treasury securities - - - - Total fixed maturity securities $ - $ 9,042,091 $ - $ 9,042,091 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Financial Instruments Disclosed, But Not Carried, at Fair Value: September 30, 2022 (Unaudited) Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 7,889,620 $ 7,889,620 $ 7,889,620 $ - $ - Mortgages on real estate 15,966,178 15,300,054 - - 15,300,054 Other long-term investments 3,634,396 3,868,033 - - 3,868,033 Accrued investment income 224,417 224,417 - - 224,417 Advances and notes receivable 110,517 110,517 - - 110,517 Total financial assets $ 27,825,128 $ 27,392,641 $ 7,889,620 $ - $ 19,503,021 Financial liabilities Policyholders’ account balances $ 28,951,508 $ 18,343,078 $ - $ - $ 18,343,078 Policy claims and other benefits 170,751 170,751 - - 170,751 Total financial liabilities $ 29,122,259 $ 18,513,829 $ - $ - $ 18,513,829 December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 8,224,914 $ 8,224,914 $ 8,224,914 $ - $ - Mortgages on real estate 13,149,073 13,496,013 - - 13,496,013 Other long-term investments 2,980,325 3,367,307 - - 3,367,307 Accrued investment income 190,299 190,299 - - 190,299 Advances and notes receivable 267,301 267,301 - - 267,301 Total financial assets $ 24,811,912 $ 25,545,834 $ 8,224,914 $ - $ 17,320,920 Financial liabilities Policyholders’ account balances $ 28,603,861 $ 26,098,410 $ - $ - $ 26,098,410 Policy claims and other benefits 537,214 537,214 - - 537,214 Total financial liabilities $ 29,141,075 $ 26,635,624 $ - $ - $ 26,635,624 |
Lease Commitment (Tables)
Lease Commitment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future payments under operating lease arrangements accounted for under ASC Topic 842 as of September 30, 2022 are as follows: 2022 (remaining) $ 24,073 2023 95,922 2024 98,810 2025 101,773 2026 104,831 2027 98,723 Total operating lease payments, undiscounted $ 524,132 Less: interest (67,016 ) Lease liability, at present value $ 457,116 |
Organization and Significant _2
Organization and Significant Accounting Policies (Details) | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | 59 Months Ended | ||||||||
Apr. 06, 2021 USD ($) | Feb. 01, 2017 USD ($) | Aug. 01, 2016 USD ($) | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | Apr. 02, 2017 USD ($) shares | |
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Payments to Acquire Businesses, Gross | $ 150,000 | ||||||||||||
Proceeds from Contributed Capital | 1,500,000 | ||||||||||||
Investments | $ 27,585,590 | $ 27,585,590 | 27,585,590 | $ 25,171,489 | |||||||||
Payments of Stock Issuance Costs | 733,442 | ||||||||||||
Public Stock Offering, Maximum | $ 25,000,000 | ||||||||||||
Deferred Policy Acquisition Cost, Capitalization | 373,834 | $ 135,999 | 1,064,379 | $ 353,948 | |||||||||
Deferred Policy Acquisition Costs, Amortization Expense | 102,361 | 24,294 | 358,916 | 153,143 | |||||||||
Deferred Sale Inducement Cost | 507,602 | 507,602 | 507,602 | 716,153 | |||||||||
Deferred Sale Inducement Cost, Capitalization | 0 | 15,473 | 0 | 86,341 | |||||||||
Deferred Sales Inducement Cost, Amortization Expense | 61,756 | $ 64,100 | 208,551 | $ 222,758 | |||||||||
Accounts Receivable, Allowance for Credit Loss | $ 49,672 | 49,672 | 49,672 | 53,985 | |||||||||
Operating Lease, Payments | $ 457,116 | 82,766 | |||||||||||
Weighted Average Number of Shares Outstanding, Basic (in Shares) | shares | 15,242,473 | 14,782,027 | 14,962,247 | 14,780,035 | |||||||||
Repayments of Related Party Debt | $ 12,665 | ||||||||||||
Maximum [Member] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Proceeds from Issuance or Sale of Equity | $ 4,400,652 | ||||||||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||||||||
Liability for Policyholder Contract Deposits, Interest Rate | 5.125% | 5.125% | 5.125% | ||||||||||
Minimum [Member] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||||||||
Liability for Policyholder Contract Deposits, Interest Rate | 1.55% | 1.55% | 1.55% | ||||||||||
Texas Republic Life Insurance Company [Member] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Payments to Acquire Businesses, Gross | $ 3,000,000 | $ 2,750,000 | |||||||||||
Proceeds from Contributed Capital | 2,100,000 | $ 1,300,000 | |||||||||||
Investments | $ 11,507,133 | $ 11,507,133 | $ 11,507,133 | ||||||||||
Texas Republic Life Solutions [Member] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Payments to Acquire Businesses, Gross | $ 50,000 | $ 50,000 | $ 200,000 | $ 100,000 | |||||||||
Investments | $ 550,000 | $ 550,000 | $ 550,000 | ||||||||||
Axis Insurance Solutions LLC AIS [Member] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Payments to Acquire Businesses, Gross | $ 25,000 | ||||||||||||
Texas Republic Life Insurance Company [Member] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 100% | ||||||||||||
Texas Republic Life Solutions [Member] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 100% | ||||||||||||
Axis Insurance Solutions LLC AIS [Member] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 100% | ||||||||||||
Private Placement [Member] | |||||||||||||
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] | |||||||||||||
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] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Public Stock Offering, Shares (in Shares) | shares | 5,000,000 | ||||||||||||
Contribution #1 [Member] | Texas Republic Life Insurance Company [Member] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Proceeds from Contributed Capital | $ 857,133 | ||||||||||||
Mortgages [Member] | |||||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||||
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 90% | 90% | 90% |
Investments (Details)
Investments (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Investments (Details) [Line Items] | |||
Investment, Fair Value, Percentage Below Investment Grade | 0% | ||
Proceeds from Sale and Maturity of Marketable Securities | $ 1,111,464 | $ 502,236 | $ 1,407,864 |
Debt Securities, Available-for-Sale, Realized Gain | 20,643 | 84,088 | |
Debt Securities, Available-for-Sale, Realized Loss | 3,008 | ||
Financing Receivable, before Allowance for Credit Loss | 42,609 | ||
Financing Receivable, Allowance for Credit Loss, Current | 79,911 | 65,575 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Investments (Details) [Line Items] | |||
Financing Receivable, before Allowance for Credit Loss | $ 117,991 | $ 190,049 | |
Ratio Equal to or Greater Than 90.2% [Member] | One Fixed Security [Member] | |||
Investments (Details) [Line Items] | |||
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 92.80% |
Investments (Details) - Debt Se
Investments (Details) - Debt Securities, Available-for-sale - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale [Line Items] | ||
Fixed Maturity Securities, Amortized Cost | $ 8,608,801 | $ 8,244,018 |
Fixed Maturity Securities, Gross Unrealized Gains | 0 | 798,073 |
Fixed Maturity Securities, Gross Unrealized Losses | 623,785 | 0 |
Fixed Maturity Securities, Fair Value | 7,985,016 | 9,042,091 |
Corporate Bond Securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fixed Maturity Securities, Amortized Cost | 7,145,725 | 8,244,018 |
Fixed Maturity Securities, Gross Unrealized Gains | 0 | 798,073 |
Fixed Maturity Securities, Gross Unrealized Losses | 622,324 | 0 |
Fixed Maturity Securities, Fair Value | 6,523,401 | 9,042,091 |
US Treasury Securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fixed Maturity Securities, Amortized Cost | 1,463,076 | 0 |
Fixed Maturity Securities, Gross Unrealized Gains | 0 | 0 |
Fixed Maturity Securities, Gross Unrealized Losses | 1,461 | 0 |
Fixed Maturity Securities, Fair Value | $ 1,461,615 | $ 0 |
Investments (Details) - Schedul
Investments (Details) - Schedule of Unrealized Loss on Investments | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Investments (Details) - Schedule of Unrealized Loss on Investments [Line Items] | ||
Corporate bonds greater than 12 months, fair value | $ 0 | |
Corporate bonds greater than 12 months, unrealized loss | $ 0 | |
Corporate bonds greater than 12 months, number of securities | 0 | |
Total fixed maturity securities, fair value | $ 7,985,016 | $ 0 |
Total fixed maturity securities, unrealized loss | $ 623,785 | $ 0 |
Total fixed maturity securities, number of securities | 50 | 0 |
Corporate Bond Securities [Member] | ||
Investments (Details) - Schedule of Unrealized Loss on Investments [Line Items] | ||
Corporate bonds less than than 12 months, fair value | $ 6,523,401 | $ 0 |
Corporate bonds less than 12 months, unrealized loss | $ 622,324 | $ 0 |
Corporate bonds less than 12 months, number of securities | 49 | 0 |
Corporate bonds greater than 12 months, fair value | $ 0 | |
Corporate bonds greater than 12 months, unrealized loss | $ 0 | |
Corporate bonds greater than 12 months, number of securities | 0 | |
US Treasury Securities [Member] | ||
Investments (Details) - Schedule of Unrealized Loss on Investments [Line Items] | ||
Corporate bonds less than than 12 months, fair value | $ 1,461,615 | |
Corporate bonds less than 12 months, unrealized loss | $ 1,461 | |
Corporate bonds less than 12 months, number of securities | 1 |
Investments (Details) - Unreali
Investments (Details) - Unrealized Gain (Loss) on Investments - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Unrealized Gain Loss On Investments Abstract | ||
Unrealized appreciation (depreciation) on available-for-sale securities | $ (623,785) | $ 798,073 |
Net unrealized appreciation (depreciation) on available-for-sale securities | $ (623,785) | $ 798,073 |
Investments (Details) - Investm
Investments (Details) - Investments Classified by Contractual Maturity Date - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Fixed Maturities [Member] | ||
Investments (Details) - Investments Classified by Contractual Maturity Date [Line Items] | ||
Due in one year or less | $ 2,262,234 | |
Due in one year or less | 2,258,039 | |
Due after one year through five years, Amortized Cost | 3,048,159 | |
Due after one year through five years, Fair Value | 2,913,164 | |
Due after five years through ten years, Amortized Cost | 1,353,281 | |
Due after five years through ten years, Fair Value | 1,224,076 | |
Due after ten years, Amortized Cost | 1,945,127 | |
Due after ten years, Fair Value | 1,589,737 | |
Total, Amortized Cost | 8,608,801 | |
Total, Fair Value | 7,985,016 | |
Other Long-Term Investments [Member] | ||
Investments (Details) - Investments Classified by Contractual Maturity Date [Line Items] | ||
Due in one year or less | 1,026,363 | |
Due in one year or less | 1,070,343 | |
Due after one year through five years, Amortized Cost | 2,259,859 | |
Due after one year through five years, Fair Value | 2,410,585 | |
Due after five years through ten years, Amortized Cost | 342,020 | |
Due after five years through ten years, Fair Value | 379,898 | |
Due after ten years, Amortized Cost | 6,154 | |
Due after ten years, Fair Value | 7,207 | |
Total, Amortized Cost | 3,634,396 | $ 2,980,325 |
Total, Fair Value | $ 3,868,033 |
Investments (Details) - Inves_2
Investments (Details) - Investment Holdings, Schedule of Investments - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Other Long-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 3,634,396 | $ 2,980,325 |
Investment, Percentage | 100% | 100% |
Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 100% | 100% |
Mortgage assets | $ 15,966,178 | $ 13,149,073 |
CALIFORNIA | Other Long-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 511,316 | $ 405,727 |
Investment, Percentage | 14.10% | 13.60% |
CALIFORNIA | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 1.20% | 1.40% |
Mortgage assets | $ 182,958 | $ 185,403 |
FLORIDA | Other Long-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 317,042 | $ 231,746 |
Investment, Percentage | 8.70% | 7.80% |
FLORIDA | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 3.10% | 6.30% |
Mortgage assets | $ 496,138 | $ 830,643 |
GEORGIA | Other Long-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 299,303 | $ 269,316 |
Investment, Percentage | 8.20% | 9% |
GEORGIA | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 5.60% | 3.70% |
Mortgage assets | $ 892,652 | $ 485,060 |
INDIANA | Other Long-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 179,642 | $ 285,263 |
Investment, Percentage | 4.90% | 9.60% |
INDIANA | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 3.10% | 1.90% |
Mortgage assets | $ 495,905 | $ 245,821 |
MASSACHUSETTS | Other Long-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 1,249,411 | $ 712,006 |
Investment, Percentage | 34.40% | 23.90% |
NEW YORK | Other Long-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 633,693 | $ 550,414 |
Investment, Percentage | 17.50% | 18.50% |
OHIO | Other Long-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 124,630 | $ 141,692 |
Investment, Percentage | 3.40% | 4.70% |
OHIO | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 0% | 1.90% |
Mortgage assets | $ 0 | $ 242,034 |
OREGON | Other Long-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 89,202 | $ 108,798 |
Investment, Percentage | 2.50% | 3.70% |
PENNSYLVANIA | Other Long-Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 230,157 | $ 275,363 |
Investment, Percentage | 6.30% | 9.20% |
PENNSYLVANIA | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 2.50% | 3.40% |
Mortgage assets | $ 398,667 | $ 446,327 |
ALABAMA | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 6.10% | 1.80% |
Mortgage assets | $ 979,085 | $ 237,805 |
ARKANSAS | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 1.30% | 1.60% |
Mortgage assets | $ 210,194 | $ 210,194 |
COLORADO | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 0% | 1.50% |
Mortgage assets | $ 0 | $ 200,175 |
CONNECTICUT | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 0% | 1.70% |
Mortgage assets | $ 0 | $ 217,559 |
ILLINOIS | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 4.60% | 5.20% |
Mortgage assets | $ 735,514 | $ 684,694 |
KANSAS | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 1.20% | 0.70% |
Mortgage assets | $ 189,100 | $ 87,063 |
KENTUCKY | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 0.60% | 0.80% |
Mortgage assets | $ 101,290 | $ 104,631 |
LOUISIANA | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 1.90% | 0.70% |
Mortgage assets | $ 309,045 | $ 95,809 |
MARYLAND | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 1.50% | 1.80% |
Mortgage assets | $ 239,297 | $ 239,298 |
MICHIGAN | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 1.20% | 1.40% |
Mortgage assets | $ 182,941 | $ 182,941 |
MISSOURI | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 18.30% | 25.20% |
Mortgage assets | $ 2,932,855 | $ 3,307,900 |
NORTH CAROLINA | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 3.30% | 1.90% |
Mortgage assets | $ 530,957 | $ 248,889 |
SOUTH CAROLINA | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 2.10% | 1.50% |
Mortgage assets | $ 330,900 | $ 200,899 |
TENNESSEE | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 34.70% | 20.90% |
Mortgage assets | $ 5,537,260 | $ 2,752,328 |
TEXAS | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 6.50% | 13.70% |
Mortgage assets | $ 1,034,100 | $ 1,801,152 |
WISCONSIN | Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 1.20% | 1% |
Mortgage assets | $ 187,320 | $ 142,448 |
Investments (Details) - Mortgag
Investments (Details) - Mortgage Loan on Real Estate - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | $ 15,966,178 | $ 13,149,073 |
Debt-to-Value Ratio, 70 to 80 Percent [Member] | ||
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 542,351 | 573,500 |
Debt-to-Value Ratio, 70 to 80 Percent [Member] | ||
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 7,051,001 | 4,409,139 |
Debt-to-Value Ratio, 60 to 70 Percent [Member] | ||
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 5,744,753 | 5,796,932 |
Debt-to-Value Ratio, 50 to 60 Percent [Member] | ||
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 1,943,761 | 1,872,626 |
Debt-to-Value Ratio, Less than 50% [Member] | ||
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | $ 684,312 | $ 496,876 |
Investments (Details) - Financi
Investments (Details) - Financing Receivable, Past Due - Mortgages [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | ||
Beginning of year: mortgage loan allowance balance | $ 65,575 | $ 37,963 |
Current year change in provision of estimated mortgage loan losses | 14,336 | 27,612 |
End of year: mortgage loan allowance balance | $ 79,911 | $ 65,575 |
Investments (Details) - Inves_3
Investments (Details) - Investment Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 433,117 | $ 289,616 | $ 1,394,069 | $ 926,991 |
Investment expenses | (12,216) | (33,606) | (164,857) | (78,237) |
Net investment income | 420,901 | 256,010 | 1,229,212 | 848,754 |
Fixed Maturities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 77,001 | 98,347 | 240,160 | 309,906 |
Other Long-Term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 66,612 | 68,423 | 187,159 | 190,982 |
Mortgages [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 283,821 | 122,645 | 860,686 | 425,502 |
Short-Term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 5,683 | $ 201 | $ 106,064 | $ 601 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | Sep. 30, 2022 |
Mortgages [Member] | |
Fair Value Measurements (Details) [Line Items] | |
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 90% |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | $ 7,985,016 | $ 9,042,091 |
Corporate Debt Securities [Member] | ||
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 6,523,401 | 9,042,091 |
US Treasury Securities [Member] | ||
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 1,461,615 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
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 1 [Member] | Corporate Debt Securities [Member] | ||
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 1 [Member] | US Treasury Securities [Member] | ||
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] | ||
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 7,985,016 | 9,042,091 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 6,523,401 | 9,042,091 |
Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | ||
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 1,461,615 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
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 3 [Member] | Corporate Debt Securities [Member] | ||
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 3 [Member] | US Treasury Securities [Member] | ||
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | $ 0 | $ 0 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details) - Fair Value, by Balance Sheet Grouping - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Financial assets | ||
Cash and cash equivalents | $ 7,889,620 | $ 8,224,914 |
Cash and cash equivalents | 7,889,620 | 8,224,914 |
Mortgages on real estate | 15,966,178 | 13,149,073 |
Mortgages on real estate | 15,300,054 | 13,496,013 |
Other long-term assets | 3,634,396 | 2,980,325 |
Other long-term assets | 3,868,033 | 3,367,307 |
Accrued investment income | 224,417 | 190,299 |
Accrued investment income | 224,417 | 190,299 |
Notes receivable | 110,517 | 267,301 |
Notes receivable | 110,517 | 267,301 |
Total financial assets | 27,825,128 | 24,811,912 |
Total financial assets | 27,392,641 | 25,545,834 |
Financial liabilities | ||
Policyholders’ account balances | 28,951,508 | 28,603,861 |
Policyholders’ account balances | 18,343,078 | 26,098,410 |
Policy claims | 170,751 | 537,214 |
Policy claims | 170,751 | 537,214 |
Total financial liabilities | 29,122,259 | 29,141,075 |
Total financial liabilities | 18,513,829 | 26,635,624 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets | ||
Cash and cash equivalents | 7,889,620 | 8,224,914 |
Mortgages on real estate | 0 | 0 |
Other long-term assets | 0 | 0 |
Accrued investment income | 0 | 0 |
Notes receivable | 0 | 0 |
Total financial assets | 7,889,620 | 8,224,914 |
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 | 15,300,054 | 13,496,013 |
Other long-term assets | 3,868,033 | 3,367,307 |
Accrued investment income | 224,417 | 190,299 |
Notes receivable | 110,517 | 267,301 |
Total financial assets | 19,503,021 | 17,320,920 |
Financial liabilities | ||
Policyholders’ account balances | 18,343,078 | 26,098,410 |
Policy claims | 170,751 | 537,214 |
Total financial liabilities | $ 18,513,829 | $ 26,635,624 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Percent | 0% |
Net Operating Loss, Percentage of Taxable Income Limitation | 80% |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) | Sep. 30, 2022 USD ($) |
Risks and Uncertainties [Abstract] | |
Cash, FDIC Insured Amount | $ 250,000 |
Cash, Uninsured Amount | $ 2,926,946 |
Stock Incentive Plan (Details)
Stock Incentive Plan (Details) - shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Stock Incentive Plan (Details) [Line Items] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period | 12,150 | 3,320 |
Employment Contracts [Member] | ||
Stock Incentive Plan (Details) [Line Items] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period | 5,000 | 19,000 |
Performance Shares [Member] | ||
Stock Incentive Plan (Details) [Line Items] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period | 7,150 |
Lease Commitment (Details) - Le
Lease Commitment (Details) - Lessee, Operating Lease, Liability, Maturity - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Lessee Operating Lease Liability Maturity Abstract | ||
2022 (remaining) | $ 24,073 | |
2023 | 95,922 | |
2024 | 98,810 | |
2025 | 101,773 | |
2026 | 104,831 | |
2027 | 98,723 | |
Total operating lease payments, undiscounted | 524,132 | |
Less: interest | (67,016) | |
Lease liability, at present value | $ 457,116 | $ 82,766 |