Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | TEXAS REPUBLIC CAPITAL CORPORATION | |
Trading Symbol | - | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 14,782,027 | |
Amendment Flag | false | |
Entity Central Index Key | 0001560452 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
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 | |
Title of 12(b) Security | Common stock $0.01 par | |
Security Exchange Name | NONE | |
Entity Address, Address Line One | 13215 Bee Cave Parkway, Ste. A120 | |
Entity Address, City or Town | Austin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78738 | |
City Area Code | 512 | |
Local Phone Number | 330-0099 | |
Entity Interactive Data Current | Yes |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Available-for-sale fixed maturity securities at fair value (Amortized cost: $9,371,174 and $9,589,936 as of June 30, 2021 and December 31, 2020, respectively) | $ 10,414,405 | $ 10,756,242 |
Mortgage loans, net of allowance | 6,693,662 | 7,704,704 |
Other long-term investments | 3,295,377 | 3,548,095 |
Total investments | 20,403,444 | 22,009,041 |
Cash and cash equivalents | 13,282,384 | 10,985,917 |
Accrued investment income | 218,342 | 166,386 |
Due premium | 35,195 | 15,501 |
Deferred policy acquisition costs | 1,141,633 | 1,052,533 |
Deferred sales inducement costs | 823,994 | 911,784 |
Advances and notes receivable, net of allowance | 145,733 | 127,858 |
Leased property - right to use | 124,149 | 165,532 |
Prepaid assets | 241,298 | 202,868 |
Furniture and equipment, net | 22,031 | 26,393 |
Other assets | 424,027 | 310,118 |
Total assets | 36,862,230 | 35,973,931 |
Liabilities and Shareholders’ Equity | ||
Policyholders’ account balances | 27,780,364 | 25,490,906 |
Future policy benefits | 855,657 | 652,846 |
Policy claims and other benefits | 111,195 | 467,219 |
Liability for deposit-type contracts | 4,749 | 10,059 |
Other policyholder liabilities | 17,735 | 103,484 |
Total policy liabilities | 28,769,700 | 26,724,514 |
Lease liability | 124,149 | 165,532 |
Other liabilities | 178,782 | 41,418 |
Total liabilities | 29,072,631 | 26,931,464 |
Shareholders’ equity | ||
Common stock, par value $.01 per share, 25,000,000 shares authorized, 14,867,097 issued as of June 30, 2021 and December 31, 2020, 14,782,027 and 14,778,707 outstanding as of June 30, 2021 and December 31, 2020, respectively | 148,671 | 148,671 |
Additional paid-in capital | 17,538,618 | 17,538,618 |
Treasury stock, at cost (85,070 and 88,390 shares as of June 30, 2021 and December 31, 2020, respectively) | (83,280) | (86,600) |
Accumulated other comprehensive income | 1,043,231 | 1,166,306 |
Accumulated deficit | (10,857,641) | (9,724,528) |
Total shareholders’ equity | 7,789,599 | 9,042,467 |
Total liabilities and shareholders’ equity | $ 36,862,230 | $ 35,973,931 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parentheticals) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Available-for-sale fixed maturity securities Amortized cost (in Dollars) | $ 9,371,174 | $ 9,589,936 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 14,867,097 | 14,867,097 |
Common stock, shares outstanding | 14,782,027 | 14,778,707 |
Treasury stock, shares | 85,070 | 88,390 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Premiums and other considerations | $ 161,105 | $ 145,770 | $ 330,721 | $ 264,915 |
Net investment income | 301,776 | 117,530 | 592,744 | 334,506 |
Net realized gains on investments | 7,554 | 0 | 6,679 | 0 |
Commission income | 55,956 | 203,252 | 65,207 | 211,505 |
Total revenues | 526,391 | 466,552 | 995,351 | 810,926 |
Benefits, claims and expenses | ||||
Increase in future policy benefits | 62,248 | 6,168 | 94,454 | 62,552 |
Death and other benefits | (25,243) | 3,171 | (39,335) | 5,592 |
Interest credited to policyholders | 293,464 | 278,149 | 657,097 | 484,300 |
Total benefits and claims | 330,469 | 287,488 | 712,216 | 552,444 |
Policy acquisition costs deferred | (85,582) | (80,187) | (217,949) | (215,364) |
Policy acquisition costs amortized | 3,655 | 24,497 | 128,849 | 49,868 |
Commissions | 150,185 | 100,340 | 323,329 | 271,426 |
Salaries and employee benefits | 324,968 | 393,248 | 651,814 | 786,740 |
Office rent | 23,092 | 15,941 | 46,810 | 38,700 |
Third-party administration fees | 19,023 | 103,870 | 46,392 | 173,574 |
Travel, meals, and entertainment | 15,469 | 4,204 | 28,423 | 15,655 |
Professional fees | 124,046 | 47,258 | 262,928 | 102,349 |
Other general and administrative expenses | 95,390 | 132,833 | 145,652 | 251,723 |
Total benefits, claims and expenses | 1,000,715 | 1,029,492 | 2,128,464 | 2,027,115 |
Net loss | $ (474,324) | $ (562,940) | $ (1,133,113) | $ (1,216,189) |
Net loss per common share outstanding (in Dollars per share) | $ (0.03) | $ (0.04) | $ (0.08) | $ (0.08) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (474,324) | $ (562,940) | $ (1,133,113) | $ (1,216,189) |
Other comprehensive income (loss) | ||||
Total net unrealized gains (losses) arising during the period | 204,894 | 790,893 | (116,396) | 222,553 |
Less net realized investment gains | 7,554 | 0 | 6,679 | 0 |
Net unrealized investment gains (losses) | 197,340 | 790,893 | (123,075) | 222,553 |
Adjustment to deferred acquisition costs | 0 | (395) | 0 | 1,009 |
Deferred taxes | 0 | (134,052) | 0 | (46,948) |
Total other comprehensive income (loss) | 197,340 | 656,446 | (123,075) | 176,614 |
Total comprehensive income (loss) | $ (276,984) | $ 93,506 | $ (1,256,188) | $ (1,039,575) |
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, 2019 | $ 148,671 | $ 17,538,618 | $ (104,485) | $ 327,676 | $ (7,237,665) | $ 10,672,815 |
7,885 | 7,885 | |||||
Other comprehensive income | 176,614 | 176,614 | ||||
Net loss | (1,216,189) | (1,216,189) | ||||
Balance at Jun. 30, 2020 | 148,671 | 17,538,618 | (96,600) | 504,290 | (8,453,854) | 9,641,125 |
Balance at Mar. 31, 2020 | 148,671 | 17,538,618 | (104,485) | (152,156) | (7,890,914) | 9,539,734 |
7,885 | 7,885 | |||||
Other comprehensive income | 656,446 | 656,446 | ||||
Net loss | (562,940) | (562,940) | ||||
Balance at Jun. 30, 2020 | 148,671 | 17,538,618 | (96,600) | 504,290 | (8,453,854) | 9,641,125 |
Balance at Dec. 31, 2020 | 148,671 | 17,538,618 | (86,600) | 1,166,306 | (9,724,528) | 9,042,467 |
3,320 | 3,320 | |||||
Other comprehensive income | (123,075) | (123,075) | ||||
Net loss | (1,133,113) | (1,133,113) | ||||
Balance at Jun. 30, 2021 | 148,671 | 17,538,618 | (83,280) | 1,043,231 | (10,857,641) | 7,789,599 |
Balance at Mar. 31, 2021 | 148,671 | 17,538,618 | (86,490) | 845,891 | (10,383,317) | 8,063,373 |
3,210 | 3,210 | |||||
Other comprehensive income | 197,340 | 197,340 | ||||
Net loss | (474,324) | (474,324) | ||||
Balance at Jun. 30, 2021 | $ 148,671 | $ 17,538,618 | $ (83,280) | $ 1,043,231 | $ (10,857,641) | $ 7,789,599 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net loss | $ (1,133,113) | $ (1,216,189) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Accretion of discount on investments | (137,803) | (93,111) |
Net realized capital gains | (6,679) | 0 |
Provision for depreciation | 6,743 | 6,653 |
Policy acquisition costs deferred | (217,949) | (215,364) |
Policy acquisition costs amortized | 128,849 | 49,868 |
Mortgage loan origination fees deferred | 0 | (84,899) |
Amortization of mortgage loan origination fees | 30,412 | 9,889 |
Provision for estimated mortgage loan losses | (4,927) | 32,636 |
Provision for estimated uncollectible advances and notes receivable | (3,921) | 59,000 |
Interest credited to policyholders | 657,097 | 484,300 |
Non-cash salary expense | 3,320 | 7,885 |
Change in assets and liabilities: | ||
Accrued investment income | (51,956) | (28,589) |
Due premium | (19,694) | (30,635) |
Advances and notes receivable | (13,954) | (26,684) |
Prepaid and other assets | (38,430) | (119,245) |
Other assets | (113,909) | (87,209) |
Future policy benefits | 202,811 | 62,545 |
Policy claims | (356,024) | 5,592 |
Other policy liabilities | (85,749) | (150,000) |
Other liabilities | 137,364 | 14,453 |
Net cash used in operating activities | (1,017,512) | (1,319,104) |
Investing activities | ||
Purchase of furniture and equipment | (2,381) | (11,810) |
Purchase of fixed maturity securities | (12,122) | (1,209,774) |
Sales of available for sale securities | 231,580 | 0 |
Purchases of mortgage loans | (572,994) | (3,998,794) |
Payments on mortgage loans | 1,579,779 | 455,105 |
Purchase of other long-term investments | 0 | (948,524) |
Payments on other long-term investments | 375,276 | 279,135 |
Net cash used in investing activities | 1,599,138 | (5,434,662) |
Financing activities | ||
Policyholder deposits | 1,836,446 | 5,884,571 |
Policyholder withdrawals | (116,295) | (5,671) |
Deposit-type contracts - withdrawals | (5,310) | (5,125) |
Net cash provided by financing activities | 1,714,841 | 5,873,775 |
Increase (decrease) in cash and cash equivalents | 2,296,467 | (879,991) |
Cash and cash equivalents, | 10,985,917 | 15,208,477 |
Cash and cash equivalents, | 13,282,384 | 14,328,486 |
Supplemental disclosure of non-cash financing activities | ||
Treasury stock issued as compensation | $ 3,320 | $ 7,885 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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 two more capital contributions of $500,000 each. Total capitalization of TRLIC was $8,907,133 at June 30, 2021. TRLS, an 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 two more capital contributions of $25,000 each. Total capitalization of TRLS was $400,000 at June 30, 2021. 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. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation of the results for the interim periods have been included. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ended December 31, 2021 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, 2020. Principles of Consolidation The consolidated financial statements include the accounts and operations of the Company and its subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Reclassifications Certain reclassifications have been made in the prior year financial statements to conform to current year classifications. These reclassifications had no effect on the previously reported net loss or shareholders’ equity. Investments Fixed maturity securities are comprised of bonds that are classified as available-for-sale and are carried at fair value with unrealized gains and losses, net of applicable income taxes, reported in accumulated other comprehensive income. The amortized cost of fixed maturity securities available-for-sale is generally adjusted for amortization of premium and accretion of discount. Interest income, as well as the related amortization of premium and accretion of discount, is included in net investment income under the effective yield method. The amortized cost of fixed maturity securities available-for-sale is written down to fair value when a decline in value is considered to be other-than-temporary. The Company evaluates the difference between the cost or amortized cost and estimated fair value of its investments to determine whether any decline in value is other-than-temporary in nature. This determination involves a degree of uncertainty. If a decline in the fair value of a security is determined to be temporary, the decline is recorded as an unrealized loss in shareholders’ equity. If a decline in a security’s fair value is considered to be other-than-temporary, the Company then determines the proper treatment for the other-than-temporary impairment. For fixed maturity securities, available-for-sale, the amount of any other-than-temporary impairment related to a credit loss is recognized in earnings and reflected as a reduction in the cost basis of the security; and the amount of any other-than-temporary impairment related to other factors is recognized in other comprehensive income (loss) with no change to the cost basis of the security. The assessment of whether a decline in fair value is considered temporary or other-than-temporary includes management’s judgment as to the financial position and future prospects of the entity issuing the security. It is not possible to accurately predict when it may be determined that a specific security will become impaired. Future adverse changes in market conditions, poor operating results of underlying investments and defaults on mortgage loan payments could result in losses or an inability to recover the current carrying value of the investments, thereby possibly requiring an impairment charge in the future. Likewise, if a change occurs in the Company’s intent to sell temporarily impaired securities prior to maturity or recovery in value, or if it becomes more likely than not that the Company will be required to sell such securities prior to recovery in value or maturity, a future impairment charge could result. If an other-than-temporary impairment related to a credit loss occurs with respect to a bond, the Company amortizes the reduced book value back to the security’s expected recovery value over the remaining term of the bond. The Company 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 $217,949 of DAC deferred and $128,849 of DAC amortized for the six months ended June 30, 2021. For the three months ended June 30, 2021, there was $85,582 of DAC deferred and $3,655 of DAC amortized. There was $215,364 of DAC deferred and $49,868 of DAC amortized for the six months ended June 30, 2020. For the three months ended June 30, 2020, there was $80,187 of DAC deferred and $24,497 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 $823,994 and $911,784 of SIC deferred at June 30, 2021 and December 31, 2020, respectively. There was $70,868 of SIC deferred and $158,658 of SIC amortized for the six months ended June 30, 2021. For the three months ended June 30, 2021, there was $30,008 of SIC deferred and $62,189 of SIC amortized. There was $295,589 of SIC deferred and $118,346 SIC amortized for the six months ended June 30, 2020. For the three months ended June 30, 2020, there was $65,465 of SIC deferred and $71,406 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 $80,623 and $84,544 as of June 30, 2021 and December 31, 2020, 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 has a 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 our 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 $124,149 as of June 30, 2021 compared to $165,532 as of December 31, 2020. 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 Net loss per common share is calculated using the weighted average number of common shares outstanding during the year. The weighted average common shares outstanding were 14,779,039 and 14,766,304 for the six months ended June 30, 2021 and 2020, respectively. The weighted average common shares outstanding were 14,779,352 and 14,768,020 for the three months ended June 30, 2021 and 2020, 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 $118,107 to FTFC under the agreement for the year ending December 31, 2020. No such purchases have been made or fees have been paid in 2021 as of June 30, 2021. 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 Adopted Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles Goodwill and Other ( ASU 2017-04 ). In March 2017, the FASB issued ASU 2017-08 Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2021 (Unaudited) Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 9,371,174 $ 1,043,231 $ - $ 10,414,405 Total fixed maturity securities $ 9,371,174 $ 1,043,231 $ - $ 10,414,405 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 9,589,936 $ 1,168,197 $ 1,891 $ 10,756,242 Total fixed maturity securities $ 9,589,936 $ 1,168,197 $ 1,891 $ 10,756,242 For securities in an unrealized loss position as of the financial statement dates, the estimated fair value, pre-tax gross unrealized loss and number of securities by length of time that those securities have been continuously in an unrealized loss position as of June 30, 2021 and December 31, 2020 are summarized as follows: Unrealized Number of June 30, 2021 (Unaudited) Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ - $ - - Greater than 12 months Corporate bonds - - - Total fixed maturity securities $ - $ - - Unrealized Number of December 31, 2020 Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ 5,750 $ 625 1 Greater than 12 months Corporate bonds 100,911 1,266 1 Total fixed maturity securities $ 106,661 $ 1,891 2 As of June 30, 2021, there were no fixed maturity securities in an unrealized loss position. As of December 31, 2020, the only fixed maturity security in a less than 12-month loss position had a fair value to amortized cost ratio of 90.2% and the one fixed maturity security in a loss position greater than 12-months had a fair value to amortized cost ratio of 98.8%. As of June 30, 2021 and December 31, 2020, 1.5% and 1.5% of total fair value of fixed maturity securities were below investment grade as rated by Standard and Poor’s, 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. Any other-than-temporary impairments on equity securities are recorded in the consolidated statements of operations in the periods incurred as the difference between fair value and cost. Based on management’s review, the Company experienced no other-than-temporary impairments during the six months ended June 30, 2021 and one other-than-temporary impairment during the year ended December 31, 2020. Management decided to recognize an impairment loss on one of its fixed maturity securities due to the prolonged loss position and the degree of overall loss resulting from credit-related issues. The Company reported an impairment loss of $94,246 through its statement of operations for the year ending December 31, 2020. Except for the impaired security, management believes that the Company will fully recover its cost basis in the securities held as of June 30, 2021, 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. There were no fixed maturity securities in an unrealized loss position. Net unrealized gains included in accumulated other comprehensive income for investments classified as available-for-sale are summarized as follows: (Unaudited) June 30, 2021 December 31, 2020 Unrealized appreciation on available-for-sale securities $ 1,043,231 $ 1,166,306 Adjustment to deferred acquisition costs - - Deferred taxes - - Net unrealized appreciation on available-for-sale securities $ 1,043,231 $ 1,166,306 The amortized cost and fair value of fixed maturity available-for-sale securities as of June 30, 2021, by contractual maturity, are summarized as follows: (Unaudited) Amortized Cost Fair Value Due in one year or less $ 99,866 $ 101,817 Due after one year through five years 4,202,033 4,520,172 Due after five years through ten years 2,585,978 2,917,068 Due after ten years 2,483,297 2,875,348 Total fixed maturity securities $ 9,371,174 $ 10,414,405 For the six months ended June 30, 2021, the Company received $231,580 of proceeds from sales and maturities of investments in available-for-sale securities and had $7,681 and $1,002 of gross gains and gross losses realized, respectively. For the year ended December 31, 2020, the Company received $692,146 of proceeds from sales and maturities of investments in available-for-sale securities and had $19,321 and $10,486 of gross gains and gross losses realized, respectively. The amortized cost and fair value of other long-term investments (which consists of lottery prize cash flows) as of June 30, 2021, by contractual maturity, are summarized as follows: (Unaudited) Amortized Cost Fair Value Due in one year or less $ 873,395 $ 898,711 Due after one year through five years 1,938,879 2,195,663 Due after five years through ten years 458,423 612,337 Due after ten years 24,680 38,748 Total other long-term investments $ 3,295,377 $ 3,745,459 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. Other long-term investments by geographic distribution: (Unaudited) June 30, 2021 % December 31, 2020 % California $ 459,651 13.9 % $ 498,627 14.1 % Florida 242,159 7.3 238,587 6.7 Georgia 286,070 8.7 324,333 9.1 Indiana 388,211 11.8 396,533 11.2 Massachusetts 799,338 24.3 863,623 24.3 New York 554,339 16.8 616,315 17.4 Ohio 143,271 4.4 160,005 4.5 Oregon 128,369 3.9 126,217 3.6 Pennsylvania 293,969 8.9 323,855 9.1 Total $ 3,295,377 100.0 % $ 3,548,095 100.0 % 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 June 30, 2021 and December 31, 2020 are summarized as follows: Loan-To-Value-Ratio (Unaudited) June 30, 2021 December 31, 2020 80% to 90% $ 623,478 $ 618,695 70% to 80% 1,382,803 1,719,585 60% to 70% 3,046,437 3,686,385 50% to 60% 1,153,171 998,617 Less than 50% 487,773 681,422 Total $ 6,693,662 $ 7,704,704 Mortgage loans by geographic distribution: State (Unaudited) June 30, 2021 % December 31, 2020 % Alabama $ 154,118 2.3 % $ 142,604 1.9 % California 185,015 2.8 188,195 2.4 Colorado 199,008 3.0 202,868 2.6 Connecticut 214,886 3.2 222,025 2.9 Florida 638,922 9.5 1,715,517 22.2 Georgia 357,586 5.3 363,603 4.7 Illinois 463,955 6.9 467,065 6.1 Indiana 47,583 0.7 48,966 0.6 Kentucky 107,470 1.6 109,376 1.4 Louisiana 97,133 1.5 99,179 1.3 Michigan - - 108,195 1.4 Missouri 369,133 5.5 375,773 4.9 South Carolina 27,773 0.4 29,384 0.4 Tennessee 1,310,215 19.6 736,619 9.6 Texas 2,300,614 34.4 2,345,107 30.4 Utah - - 329,324 4.3 Virginia 75,678 1.1 77,110 1.0 Wisconsin 144,573 2.2 143,794 1.9 Total $ 6,693,662 100.0 % $ 7,704,704 100.0 % There were 3 mortgage loans with a principal balance of $190,799 that were 90 days or more past due and still accruing interest as of June 30, 2021. There were 3 mortgage loans with a principal balance of $191,110 that were 90 days or more past due and still accruing interest as of December 31, 2020. The Company had a mortgage loan allowance of $33,036 and $37,963 as of June 30, 2021 and December 31, 2020, respectively. (Unaudited) June 30, 2021 December 31, 2020 Beginning of year: mortgage loan allowance balance $ 37,963 $ - Current year change in provision of estimated mortgage loan losses (4,927 ) 37,963 End of year: mortgage loan allowance balance $ 33,036 $ 37,963 Major categories of net investment income for the three and six months ended June 30, 2021 and 2020 are summarized as follows: (Unaudited) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Fixed maturity securities $ 96,131 $ 62,759 $ 211,559 $ 145,688 Other long-term assets 67,821 32,577 122,559 87,539 Mortgage loans 151,053 65,972 302,857 112,828 Short-term and other investments 210 7,588 400 46,021 Gross investment income 315,215 168,896 637,375 392,076 Investment expenses (13,439 ) (51,366 ) (44,631 ) (57,570 ) Net investment income $ 301,776 $ 117,530 $ 592,744 $ 334,506 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020 are summarized as follows: June 30, 2021 (Unaudited) Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 10,414,405 $ - $ 10,414,405 Total fixed maturity securities $ - $ 10,414,405 $ - $ 10,414,405 December 31, 2020 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 10,756,242 $ - $ 10,756,242 Total fixed maturity securities $ - $ 10,756,242 $ - $ 10,756,242 Fair values for Level 2 assets for the Company’s fixed maturity securities available-for-sale are primarily based on prices supplied by a third-party investment service. The third-party investment service provides quoted prices which use observable inputs in developing such rates. The Company analyzes market valuations received to verify reasonableness and to understand the key assumptions used and the sources. Since the fixed maturity securities owned by the Company do not trade on a daily basis, the third-party investment service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings, and matrix pricing. As the fair value estimates of the Company’s fixed maturity securities are based on observable market information rather than market quotes, the estimates of fair value on these fixed maturity securities are included in Level 2 of the hierarchy. The Company’s Level 2 investments include corporate bonds. The Company’s fixed maturity securities available-for-sale portfolio is highly liquid and allows for 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 June 30, 2021 and December 31, 2020 and the level within the fair value hierarchy at which such assets and liabilities are measured on a recurring basis are summarized as follows: Financial Instruments Disclosed, But Not Carried, at Fair Value: June 30, 2021 (Unaudited) Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 13,282,384 $ 13,282,384 $ 13,282,384 $ - $ - Mortgages on real estate 6,693,662 7,143,003 - - 7,143,003 Other long-term investments 3,295,377 3,745,459 - - 3,745,459 Accrued investment income 218,342 218,342 - - 218,342 Advances and notes receivable 145,733 145,733 - - 145,733 Total financial assets $ 23,635,498 $ 24,534,921 $ 13,282,384 $ - $ 11,252,537 Financial liabilities Policyholders’ account balances $ 27,780,364 $ 27,799,961 $ - $ - $ 27,799,961 Policy claims and other benefits 111,195 111,195 - - 111,195 Total financial liabilities $ 27,891,559 $ 27,911,156 $ - $ - $ 27,911,156 December 31, 2020 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 10,985,917 $ 10,985,917 $ 10,985,917 $ - $ - Mortgages on real estate 7,704,704 8,358,970 - - 8,358,970 Other long-term investments 3,548,095 4,103,229 - - 4,103,229 Accrued investment income 166,386 166,386 - - 166,386 Advances and notes receivable 127,858 127,858 - - 127,858 Total financial assets $ 22,532,960 $ 23,742,360 $ 10,985,917 $ - $ 12,756,443 Financial liabilities Policyholders’ account balances $ 25,490,906 $ 23,971,146 $ - $ - $ 23,971,146 Policy claims and other benefits 467,219 467,219 - - 467,219 Total financial liabilities $ 25,958,125 $ 24,438,365 $ - $ - $ 24,438,365 The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment was required to interpret market data to develop these estimates. Accordingly, the estimates are not necessarily indicative of the amounts which could be realized in a current market exchange. The use of different market assumptions or estimation methodologies may have a material effect on the fair value amounts. The following methods and assumptions were used in estimating the fair value disclosures for financial instruments in the accompanying financial statements and notes thereto: Fixed Maturity Securities The fair value of fixed maturity securities is based on the principles previously discussed as Level 1, Level 2 and Level 3. Cash and Cash Equivalents, Accrued Investment Income and Advances and Notes Receivable The carrying value of these financial instruments approximates their fair values due to the expected short-term nature until the cash settlement of these items. Cash and cash equivalents are included in Level 1 of the fair value hierarchy due to their highly liquid nature. Accrued investment income and advances and notes receivable are included in Level 3 of the fair value hierarchy due to little or no availability of market activity for these types of assets. Mortgages 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021. 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 June 30, 2021, 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 percent 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 2017 through 2019 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 $4,772,574 as of June 30, 2021. 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 | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | 6. Stock Incentive Plan The Company’s life subsidiary, TRLIC has an Agent Stock Incentive Plan (“ASIP”). The plan was approved in August 2018 by the Texas State Securities Board. The plan awards shares of Texas Republic Capital Corporation common stock to agents based on certain production levels achieved in sales of life and annuity products. Calculation of awards at December 31, 2020 are based on production for the period of January through December 2020. 3,320 shares have been issued in 2021. The ASIP will issue an additional 1,500 shares in 2021 awarded on 2020 production. The ASIP issued 4,120 shares in 2020 based on 2019 production. In addition, the Company granted 10,000 shares each in 2020 and 2019 as part of employment agreements to two employees. |
Lease Commitment
Lease Commitment | 6 Months Ended |
Jun. 30, 2021 | |
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 2022. The lease includes an option to extend or renew the lease term. The operating lease liability includes lease payments related to options to extend or renew the lease term only if the Company is reasonably certain of exercising those options. The exercise of the renewal option is at the Company's discretion; at this time there is uncertainty as to the Company exercising its renewal option, so the option is not included in the determination of the present value calculation. In determining the present value of lease payments, the Company uses its incremental borrowing rate obtained from its main commercial bank. Future payments under operating lease arrangements accounted for under ASC Topic 842 as of June 30, 2021 are as follows: 2021 (remaining) $ 47,723 2022 96,597 Total operating lease payments, undiscounted $ 144,320 Less: interest (20,171 ) Lease liability, at present value $ 124,149 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation of the results for the interim periods have been included. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ended December 31, 2021 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, 2020. |
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. 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 |
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 $217,949 of DAC deferred and $128,849 of DAC amortized for the six months ended June 30, 2021. For the three months ended June 30, 2021, there was $85,582 of DAC deferred and $3,655 of DAC amortized. There was $215,364 of DAC deferred and $49,868 of DAC amortized for the six months ended June 30, 2020. For the three months ended June 30, 2020, there was $80,187 of DAC deferred and $24,497 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 $823,994 and $911,784 of SIC deferred at June 30, 2021 and December 31, 2020, respectively. There was $70,868 of SIC deferred and $158,658 of SIC amortized for the six months ended June 30, 2021. For the three months ended June 30, 2021, there was $30,008 of SIC deferred and $62,189 of SIC amortized. There was $295,589 of SIC deferred and $118,346 SIC amortized for the six months ended June 30, 2020. For the three months ended June 30, 2020, there was $65,465 of SIC deferred and $71,406 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 $80,623 and $84,544 as of June 30, 2021 and December 31, 2020, 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 has a 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 our 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 $124,149 as of June 30, 2021 compared to $165,532 as of December 31, 2020. |
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 |
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 Net loss per common share is calculated using the weighted average number of common shares outstanding during the year. The weighted average common shares outstanding were 14,779,039 and 14,766,304 for the six months ended June 30, 2021 and 2020, respectively. The weighted average common shares outstanding were 14,779,352 and 14,768,020 for the three months ended June 30, 2021 and 2020, 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 $118,107 to FTFC under the agreement for the year ending December 31, 2020. No such purchases have been made or fees have been paid in 2021 as of June 30, 2021. |
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 Adopted Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles Goodwill and Other ( ASU 2017-04 ). In March 2017, the FASB issued ASU 2017-08 Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement 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) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Debt Securities, Available-for-sale [Table Text Block] | Investments in fixed maturity securities available-for-sale as of June 30, 2021 and December 31, 2020 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2021 (Unaudited) Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 9,371,174 $ 1,043,231 $ - $ 10,414,405 Total fixed maturity securities $ 9,371,174 $ 1,043,231 $ - $ 10,414,405 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost Gains Losses Value Fixed maturity securities Corporate bonds $ 9,589,936 $ 1,168,197 $ 1,891 $ 10,756,242 Total fixed maturity securities $ 9,589,936 $ 1,168,197 $ 1,891 $ 10,756,242 |
Schedule of Unrealized Loss on Investments [Table Text Block] | For securities in an unrealized loss position as of the financial statement dates, the estimated fair value, pre-tax gross unrealized loss and number of securities by length of time that those securities have been continuously in an unrealized loss position as of June 30, 2021 and December 31, 2020 are summarized as follows: Unrealized Number of June 30, 2021 (Unaudited) Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ - $ - - Greater than 12 months Corporate bonds - - - Total fixed maturity securities $ - $ - - Unrealized Number of December 31, 2020 Fair Value Loss Securities Fixed maturity securities Less than 12 months Corporate bonds $ 5,750 $ 625 1 Greater than 12 months Corporate bonds 100,911 1,266 1 Total fixed maturity securities $ 106,661 $ 1,891 2 |
Unrealized Gain (Loss) on Investments [Table Text Block] | Net unrealized gains included in accumulated other comprehensive income for investments classified as available-for-sale are summarized as follows: (Unaudited) June 30, 2021 December 31, 2020 Unrealized appreciation on available-for-sale securities $ 1,043,231 $ 1,166,306 Adjustment to deferred acquisition costs - - Deferred taxes - - Net unrealized appreciation on available-for-sale securities $ 1,043,231 $ 1,166,306 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of fixed maturity available-for-sale securities as of June 30, 2021, by contractual maturity, are summarized as follows: (Unaudited) Amortized Cost Fair Value Due in one year or less $ 99,866 $ 101,817 Due after one year through five years 4,202,033 4,520,172 Due after five years through ten years 2,585,978 2,917,068 Due after ten years 2,483,297 2,875,348 Total fixed maturity securities $ 9,371,174 $ 10,414,405 (Unaudited) Amortized Cost Fair Value Due in one year or less $ 873,395 $ 898,711 Due after one year through five years 1,938,879 2,195,663 Due after five years through ten years 458,423 612,337 Due after ten years 24,680 38,748 Total other long-term investments $ 3,295,377 $ 3,745,459 |
Investment Holdings, Schedule of Investments [Table Text Block] | (Unaudited) June 30, 2021 % December 31, 2020 % California $ 459,651 13.9 % $ 498,627 14.1 % Florida 242,159 7.3 238,587 6.7 Georgia 286,070 8.7 324,333 9.1 Indiana 388,211 11.8 396,533 11.2 Massachusetts 799,338 24.3 863,623 24.3 New York 554,339 16.8 616,315 17.4 Ohio 143,271 4.4 160,005 4.5 Oregon 128,369 3.9 126,217 3.6 Pennsylvania 293,969 8.9 323,855 9.1 Total $ 3,295,377 100.0 % $ 3,548,095 100.0 % State (Unaudited) June 30, 2021 % December 31, 2020 % Alabama $ 154,118 2.3 % $ 142,604 1.9 % California 185,015 2.8 188,195 2.4 Colorado 199,008 3.0 202,868 2.6 Connecticut 214,886 3.2 222,025 2.9 Florida 638,922 9.5 1,715,517 22.2 Georgia 357,586 5.3 363,603 4.7 Illinois 463,955 6.9 467,065 6.1 Indiana 47,583 0.7 48,966 0.6 Kentucky 107,470 1.6 109,376 1.4 Louisiana 97,133 1.5 99,179 1.3 Michigan - - 108,195 1.4 Missouri 369,133 5.5 375,773 4.9 South Carolina 27,773 0.4 29,384 0.4 Tennessee 1,310,215 19.6 736,619 9.6 Texas 2,300,614 34.4 2,345,107 30.4 Utah - - 329,324 4.3 Virginia 75,678 1.1 77,110 1.0 Wisconsin 144,573 2.2 143,794 1.9 Total $ 6,693,662 100.0 % $ 7,704,704 100.0 % |
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 June 30, 2021 and December 31, 2020 are summarized as follows: Loan-To-Value-Ratio (Unaudited) June 30, 2021 December 31, 2020 80% to 90% $ 623,478 $ 618,695 70% to 80% 1,382,803 1,719,585 60% to 70% 3,046,437 3,686,385 50% to 60% 1,153,171 998,617 Less than 50% 487,773 681,422 Total $ 6,693,662 $ 7,704,704 |
Financing Receivable, Past Due [Table Text Block] | There were 3 mortgage loans with a principal balance of $190,799 that were 90 days or more past due and still accruing interest as of June 30, 2021. There were 3 mortgage loans with a principal balance of $191,110 that were 90 days or more past due and still accruing interest as of December 31, 2020. The Company had a mortgage loan allowance of $33,036 and $37,963 as of June 30, 2021 and December 31, 2020, respectively. (Unaudited) June 30, 2021 December 31, 2020 Beginning of year: mortgage loan allowance balance $ 37,963 $ - Current year change in provision of estimated mortgage loan losses (4,927 ) 37,963 End of year: mortgage loan allowance balance $ 33,036 $ 37,963 |
Investment Income [Table Text Block] | Major categories of net investment income for the three and six months ended June 30, 2021 and 2020 are summarized as follows: (Unaudited) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Fixed maturity securities $ 96,131 $ 62,759 $ 211,559 $ 145,688 Other long-term assets 67,821 32,577 122,559 87,539 Mortgage loans 151,053 65,972 302,857 112,828 Short-term and other investments 210 7,588 400 46,021 Gross investment income 315,215 168,896 637,375 392,076 Investment expenses (13,439 ) (51,366 ) (44,631 ) (57,570 ) Net investment income $ 301,776 $ 117,530 $ 592,744 $ 334,506 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The Company’s fair value hierarchy for those financial instruments measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020 are summarized as follows: June 30, 2021 (Unaudited) Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 10,414,405 $ - $ 10,414,405 Total fixed maturity securities $ - $ 10,414,405 $ - $ 10,414,405 December 31, 2020 Level 1 Level 2 Level 3 Total Fixed maturity securities, available-for-sale Corporate bonds $ - $ 10,756,242 $ - $ 10,756,242 Total fixed maturity securities $ - $ 10,756,242 $ - $ 10,756,242 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Financial Instruments Disclosed, But Not Carried, at Fair Value: June 30, 2021 (Unaudited) Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 13,282,384 $ 13,282,384 $ 13,282,384 $ - $ - Mortgages on real estate 6,693,662 7,143,003 - - 7,143,003 Other long-term investments 3,295,377 3,745,459 - - 3,745,459 Accrued investment income 218,342 218,342 - - 218,342 Advances and notes receivable 145,733 145,733 - - 145,733 Total financial assets $ 23,635,498 $ 24,534,921 $ 13,282,384 $ - $ 11,252,537 Financial liabilities Policyholders’ account balances $ 27,780,364 $ 27,799,961 $ - $ - $ 27,799,961 Policy claims and other benefits 111,195 111,195 - - 111,195 Total financial liabilities $ 27,891,559 $ 27,911,156 $ - $ - $ 27,911,156 December 31, 2020 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 10,985,917 $ 10,985,917 $ 10,985,917 $ - $ - Mortgages on real estate 7,704,704 8,358,970 - - 8,358,970 Other long-term investments 3,548,095 4,103,229 - - 4,103,229 Accrued investment income 166,386 166,386 - - 166,386 Advances and notes receivable 127,858 127,858 - - 127,858 Total financial assets $ 22,532,960 $ 23,742,360 $ 10,985,917 $ - $ 12,756,443 Financial liabilities Policyholders’ account balances $ 25,490,906 $ 23,971,146 $ - $ - $ 23,971,146 Policy claims and other benefits 467,219 467,219 - - 467,219 Total financial liabilities $ 25,958,125 $ 24,438,365 $ - $ - $ 24,438,365 |
Lease Commitment (Tables)
Lease Commitment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 are as follows: 2021 (remaining) $ 47,723 2022 96,597 Total operating lease payments, undiscounted $ 144,320 Less: interest (20,171 ) Lease liability, at present value $ 124,149 |
Organization and Significant _2
Organization and Significant Accounting Policies (Details) | Apr. 06, 2021USD ($) | Feb. 01, 2017USD ($) | Aug. 01, 2016USD ($) | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 02, 2017USD ($)shares |
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||
Investments | $ 20,403,444 | $ 20,403,444 | $ 22,009,041 | ||||||||
Public Stock Offering, Maximum | $ 25,000,000 | ||||||||||
Deferred Policy Acquisition Cost, Capitalization | 85,582 | $ 80,187 | 217,949 | $ 215,364 | |||||||
Deferred Policy Acquisition Costs, Amortization Expense | 3,655 | 24,497 | 128,849 | 49,868 | |||||||
Deferred Sale Inducement Cost | 823,994 | 823,994 | 911,784 | ||||||||
Deferred Sale Inducement Cost, Capitalization | 30,008 | 65,465 | 70,868 | 295,589 | |||||||
Deferred Sales Inducement Cost, Amortization Expense | 62,189 | $ 71,406 | 158,658 | $ 118,346 | |||||||
Accounts Receivable, Allowance for Credit Loss | $ 80,623 | 80,623 | 84,544 | ||||||||
Operating Lease, Payments | $ 124,149 | 165,532 | |||||||||
Weighted Average Number of Shares Outstanding, Basic (in Shares) | shares | 14,779,352 | 14,768,020 | 14,779,039 | 14,766,304 | |||||||
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% | |||||||||
Maximum [Member] | |||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||||||
Liability for Policyholder Contract Deposits, Interest Rate | 5.125% | 5.125% | |||||||||
Mortgages [Member] | |||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 90.00% | 90.00% | |||||||||
Related Party Transaction, Amounts of Transaction | 118,107 | ||||||||||
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 | |||||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||||
Proceeds from Contributed Capital | $ 500,000 | ||||||||||
Investments | $ 8,907,133 | 8,907,133 | |||||||||
Texas Republic Life Insurance Company [Member] | Contribution #1 [Member] | |||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||
Proceeds from Contributed Capital | $ 857,133 | ||||||||||
Texas Republic Life Insurance Company [Member] | Contribution #2 [Member] | |||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||
Proceeds from Contributed Capital | $ 1,300,000 | ||||||||||
Texas Republic Life Solutions [Member] | |||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||
Payments to Acquire Businesses, Gross | $ 50,000 | 25,000 | $ 200,000 | $ 100,000 | |||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||||
Investments | $ 400,000 | $ 400,000 | |||||||||
Axis Insurance Solutions, LLC ("AIS") [Member] | |||||||||||
Organization and Significant Accounting Policies (Details) [Line Items] | |||||||||||
Payments to Acquire Businesses, Gross | $ 25,000 | ||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||||
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 |
Investments (Details)
Investments (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Investments (Details) [Line Items] | |||
Other than Temporary Impairment Losses, Investments | $ 94,246 | ||
Proceeds from Sale and Maturity of Marketable Securities | $ 231,580 | $ 0 | 692,146 |
Debt Securities, Trading, Unrealized Loss | 7,681 | ||
Debt Securities, Available-for-sale, Realized Gain | 1,002 | 19,321 | |
Debt Securities, Available-for-sale, Realized Loss | 10,486 | ||
Financing Receivable, Allowance for Credit Loss, Current | 33,036 | $ 37,963 | |
One Fixed Security [Member] | Corporate Bond Securities [Member] | Ratio Equal to or Greater Than 90.2% [Member] | |||
Investments (Details) [Line Items] | |||
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 90.20% | ||
One Fixed Security [Member] | Corporate Bond Securities [Member] | Ratio Over 98% [Member] | |||
Investments (Details) [Line Items] | |||
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 98.80% | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Investments (Details) [Line Items] | |||
Financing Receivable, before Allowance for Credit Loss | $ 190,799 | $ 191,110 |
Investments (Details) - Debt Se
Investments (Details) - Debt Securities, Available-for-sale - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed Maturity Securities, Amortized Cost | $ 9,371,174 | $ 9,589,936 |
Fixed Maturity Securities, Gross Unrealized Gains | 1,043,231 | 1,168,197 |
Fixed Maturity Securities, Gross Unrealized Losses | 0 | 1,891 |
Fixed Maturity Securities, Fair Value | 10,414,405 | 10,756,242 |
Corporate Bond Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed Maturity Securities, Amortized Cost | 9,371,174 | 9,589,936 |
Fixed Maturity Securities, Gross Unrealized Gains | 1,043,231 | 1,168,197 |
Fixed Maturity Securities, Gross Unrealized Losses | 0 | 1,891 |
Fixed Maturity Securities, Fair Value | $ 10,414,405 | $ 10,756,242 |
Investments (Details) - Schedul
Investments (Details) - Schedule of Unrealized Loss on Investments | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Greater than 12 months | ||
Corporate bonds greater than 12 months, fair value | $ 100,911 | |
Corporate bonds greater than 12 months, unrealized loss | 1,266 | |
Corporate bonds greater than 12 months, number of securities | 1 | |
Total fixed maturity securities, fair value | $ 0 | 106,661 |
Total fixed maturity securities, unrealized loss | $ 0 | $ 1,891 |
Total fixed maturity securities, number of securities | 0 | 2 |
Corporate Bond Securities [Member] | ||
Less than 12 months | ||
Corporate bonds less than than 12 months, fair value | $ 0 | $ 5,750 |
Corporate bonds less than 12 months, unrealized loss | 0 | 625 |
Corporate bonds less than 12 months, number of securities | 0 | $ 1 |
Greater than 12 months | ||
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 |
Investments (Details) - Unreali
Investments (Details) - Unrealized Gain (Loss) on Investments - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Unrealized Gain (Loss) on Investments [Abstract] | ||
Unrealized appreciation on available-for-sale securities | $ 1,043,231 | $ 1,166,306 |
Adjustment to deferred acquisition costs | 0 | 0 |
Deferred taxes | 0 | 0 |
Net unrealized appreciation on available-for-sale securities | $ 1,043,231 | $ 1,166,306 |
Investments (Details) - Investm
Investments (Details) - Investments Classified by Contractual Maturity Date - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Fixed Maturities [Member] | ||
Investments (Details) - Investments Classified by Contractual Maturity Date [Line Items] | ||
Due in one year or less, Amortized Cost | $ 99,866 | |
Due in one year or less, Fair Value | 101,817 | |
Due after one year through five years, Amortized Cost | 4,202,033 | |
Due after one year through five years, Fair Value | 4,520,172 | |
Due after five years through ten years, Amortized Cost | 2,585,978 | |
Due after five years through ten years, Fair Value | 2,917,068 | |
Due after ten years, Amortized Cost | 2,483,297 | |
Due after ten years, Fair Value | 2,875,348 | |
Total, Amortized Cost | 9,371,174 | |
Total, Fair Value | 10,414,405 | |
Other Long-term Investments [Member] | ||
Investments (Details) - Investments Classified by Contractual Maturity Date [Line Items] | ||
Due in one year or less, Amortized Cost | 873,395 | |
Due in one year or less, Fair Value | 898,711 | |
Due after one year through five years, Amortized Cost | 1,938,879 | |
Due after one year through five years, Fair Value | 2,195,663 | |
Due after five years through ten years, Amortized Cost | 458,423 | |
Due after five years through ten years, Fair Value | 612,337 | |
Due after ten years, Amortized Cost | 24,680 | |
Due after ten years, Fair Value | 38,748 | |
Total, Amortized Cost | 3,295,377 | $ 3,548,095 |
Total, Fair Value | $ 3,745,459 |
Investments (Details) - Inves_2
Investments (Details) - Investment Holdings, Schedule of Investments - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Other Long-term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 3,295,377 | $ 3,548,095 |
Investment, Percentage | 100.00% | 100.00% |
Other Long-term Investments [Member] | CALIFORNIA | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 459,651 | $ 498,627 |
Investment, Percentage | 13.90% | 14.10% |
Other Long-term Investments [Member] | FLORIDA | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 242,159 | $ 238,587 |
Investment, Percentage | 7.30% | 6.70% |
Other Long-term Investments [Member] | GEORGIA | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 286,070 | $ 324,333 |
Investment, Percentage | 8.70% | 9.10% |
Other Long-term Investments [Member] | INDIANA | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 388,211 | $ 396,533 |
Investment, Percentage | 11.80% | 11.20% |
Other Long-term Investments [Member] | MASSACHUSETTS | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 799,338 | $ 863,623 |
Investment, Percentage | 24.30% | 24.30% |
Other Long-term Investments [Member] | NEW YORK | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 554,339 | $ 616,315 |
Investment, Percentage | 16.80% | 17.40% |
Other Long-term Investments [Member] | OHIO | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 143,271 | $ 160,005 |
Investment, Percentage | 4.40% | 4.50% |
Other Long-term Investments [Member] | OREGON | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 128,369 | $ 126,217 |
Investment, Percentage | 3.90% | 3.60% |
Other Long-term Investments [Member] | PENNSYLVANIA | ||
Schedule of Investments [Line Items] | ||
Long-term Investment | $ 293,969 | $ 323,855 |
Investment, Percentage | 8.90% | 9.10% |
Mortgages [Member] | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 100.00% | 100.00% |
Mortgage assets | $ 6,693,662 | $ 7,704,704 |
Mortgages [Member] | CALIFORNIA | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 2.80% | 2.40% |
Mortgage assets | $ 185,015 | $ 188,195 |
Mortgages [Member] | FLORIDA | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 9.50% | 22.20% |
Mortgage assets | $ 638,922 | $ 1,715,517 |
Mortgages [Member] | GEORGIA | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 5.30% | 4.70% |
Mortgage assets | $ 357,586 | $ 363,603 |
Mortgages [Member] | INDIANA | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 0.70% | 0.60% |
Mortgage assets | $ 47,583 | $ 48,966 |
Mortgages [Member] | ALABAMA | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 2.30% | 1.90% |
Mortgage assets | $ 154,118 | $ 142,604 |
Mortgages [Member] | COLORADO | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 3.00% | 2.60% |
Mortgage assets | $ 199,008 | $ 202,868 |
Mortgages [Member] | MARYLAND | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 3.20% | 2.90% |
Mortgage assets | $ 214,886 | $ 222,025 |
Mortgages [Member] | ILLINOIS | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 6.90% | 6.10% |
Mortgage assets | $ 463,955 | $ 467,065 |
Mortgages [Member] | KENTUCKY | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 1.60% | 1.40% |
Mortgage assets | $ 107,470 | $ 109,376 |
Mortgages [Member] | LOUISIANA | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 1.50% | 1.30% |
Mortgage assets | $ 97,133 | $ 99,179 |
Mortgages [Member] | MICHIGAN | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 0.00% | 1.40% |
Mortgage assets | $ 0 | $ 108,195 |
Mortgages [Member] | MISSOURI | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 5.50% | 4.90% |
Mortgage assets | $ 369,133 | $ 375,773 |
Mortgages [Member] | SOUTH CAROLINA | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 0.40% | 0.40% |
Mortgage assets | $ 27,773 | $ 29,384 |
Mortgages [Member] | TENNESSEE | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 19.60% | 9.60% |
Mortgage assets | $ 1,310,215 | $ 736,619 |
Mortgages [Member] | TEXAS | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 34.40% | 30.40% |
Mortgage assets | $ 2,300,614 | $ 2,345,107 |
Mortgages [Member] | UTAH | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 0.00% | 4.30% |
Mortgage assets | $ 0 | $ 329,324 |
Mortgages [Member] | VIRGINIA | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 1.10% | 1.00% |
Mortgage assets | $ 75,678 | $ 77,110 |
Mortgages [Member] | WISCONSIN | ||
Schedule of Investments [Line Items] | ||
Investment, Percentage | 2.20% | 1.90% |
Mortgage assets | $ 144,573 | $ 143,794 |
Investments (Details) - Mortgag
Investments (Details) - Mortgage Loan on Real Estate - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | $ 6,693,662 | $ 7,704,704 |
Debt-to-Value Ratio, 70 to 80 Percent [Member] | ||
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 623,478 | 618,695 |
Debt-to-Value Ratio, 70 to 80 Percent [Member] | ||
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 1,382,803 | 1,719,585 |
Debt-to-Value Ratio, 60 to 70 Percent [Member] | ||
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 3,046,437 | 3,686,385 |
Debt-to-Value Ratio, 50 to 60 Percent [Member] | ||
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | 1,153,171 | 998,617 |
Debt-to-Value Ratio, Less than 50% [Member] | ||
Investments (Details) - Mortgage Loan on Real Estate [Line Items] | ||
Mortgage loans on real estate | $ 487,773 | $ 681,422 |
Investments (Details) - Financi
Investments (Details) - Financing Receivable, Past Due - Mortgages [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | ||
Beginning of year: mortgage loan allowance balance | $ 37,963 | $ 0 |
Current year provision of estimated mortgage loan losses | (4,927) | 37,963 |
End of year: mortgage loan allowance balance | $ 33,036 | $ 37,963 |
Investments (Details) - Inves_3
Investments (Details) - Investment Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 315,215 | $ 168,896 | $ 637,375 | $ 392,076 |
Investment expenses | (13,439) | (51,366) | (44,631) | (57,570) |
Net investment income | 301,776 | 117,530 | 592,744 | 334,506 |
Fixed Maturities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 96,131 | 62,759 | 211,559 | 145,688 |
Other Long-term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 67,821 | 32,577 | 122,559 | 87,539 |
Mortgages [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 151,053 | 65,972 | 302,857 | 112,828 |
Short-term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 210 | $ 7,588 | $ 400 | $ 46,021 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | Jun. 30, 2021 |
Mortgages [Member] | |
Fair Value Measurements (Details) [Line Items] | |
Fixed Maturity Securities, Fair Value to Amortized Cost Ratio | 90.00% |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | $ 10,414,405 | $ 10,756,242 |
Corporate Debt Securities [Member] | ||
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 10,414,405 | 10,756,242 |
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 2 [Member] | ||
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measure on Recurring Basis [Line Items] | ||
Fixed Maturity Securities | 10,414,405 | 10,756,242 |
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 | 10,414,405 | 10,756,242 |
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 Measurements (Deta_3
Fair Value Measurements (Details) - Fair Value, by Balance Sheet Grouping - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 13,282,384 | $ 10,985,917 | $ 14,328,486 | $ 15,208,477 |
Cash and cash equivalents | 13,282,384 | 10,985,917 | ||
Mortgages on real estate | 6,693,662 | 7,704,704 | ||
Mortgages on real estate | 7,143,003 | 8,358,970 | ||
Other long-term assets | 3,295,377 | 3,548,095 | ||
Other long-term assets | 3,745,459 | 4,103,229 | ||
Accrued investment income | 218,342 | 166,386 | ||
Accrued investment income | 218,342 | 166,386 | ||
Notes receivable | 145,733 | 127,858 | ||
Notes receivable | 145,733 | 127,858 | ||
Total financial assets | 23,635,498 | 22,532,960 | ||
Total financial assets | 24,534,921 | 23,742,360 | ||
Policyholders’ account balances | 27,780,364 | 25,490,906 | ||
Policyholders’ account balances | 27,799,961 | 23,971,146 | ||
Policy claims | 111,195 | 467,219 | ||
Policy claims | 111,195 | 467,219 | ||
Total financial liabilities | 27,891,559 | 25,958,125 | ||
Total financial liabilities | 27,911,156 | 24,438,365 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 13,282,384 | 10,985,917 | ||
Mortgages on real estate | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||
Notes receivable | 0 | 0 | ||
Total financial assets | 13,282,384 | 10,985,917 | ||
Policyholders’ account balances | 0 | 0 | ||
Policy claims | 0 | 0 | ||
Total financial liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
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 | ||
Policyholders’ account balances | 0 | 0 | ||
Policy claims | 0 | 0 | ||
Total financial liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Mortgages on real estate | 7,143,003 | 8,358,970 | ||
Other long-term assets | 3,745,459 | 4,103,229 | ||
Accrued investment income | 218,342 | 166,386 | ||
Notes receivable | 145,733 | 127,858 | ||
Total financial assets | 11,252,537 | 12,756,443 | ||
Policyholders’ account balances | 27,799,961 | 23,971,146 | ||
Policy claims | 111,195 | 467,219 | ||
Total financial liabilities | $ 27,911,156 | $ 24,438,365 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) | Jun. 30, 2021USD ($) |
Risks and Uncertainties [Abstract] | |
Cash, FDIC Insured Amount | $ 250,000 |
Cash, Uninsured Amount | $ 4,772,574 |
Stock Incentive Plan (Details)
Stock Incentive Plan (Details) - shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Incentive Plan (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 3,320 | 1,500 | 4,120 |
Employment Contracts [Member] | |||
Stock Incentive Plan (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 10,000 | 10,000 |
Lease Commitment (Details) - Le
Lease Commitment (Details) - Lessee, Operating Lease, Liability, Maturity - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Maturity [Abstract] | ||
2021 (remaining) | $ 47,723 | |
2022 | 96,597 | |
Total operating lease payments, undiscounted | 144,320 | |
Less: interest | (20,171) | |
Lease liability, at present value | $ 124,149 | $ 165,532 |