Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-56243 | ||
Entity Registrant Name | Standard Premium Finance Holdings, Inc. | ||
Entity Central Index Key | 0001807893 | ||
Entity Tax Identification Number | 81-2624094 | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Address, Address Line One | 13590 SW 134th Avenue | ||
Entity Address, Address Line Two | Suite 214 | ||
Entity Address, City or Town | Miami | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33186 | ||
City Area Code | 305 | ||
Local Phone Number | 232-2752 | ||
Title of 12(g) Security | Common Stock, $.001 par value per share | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Elected Not To Use the Extended Transition Period | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,315,839 | ||
Entity Common Stock, Shares Outstanding | 2,905,016 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 5036 | ||
Auditor Name | Assurance Dimensions | ||
Auditor Location | Margate, Florida |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash | $ 45,239 | $ 421,211 |
Premium finance contracts and related receivable, net of allowance for credit losses of $1,501,593 and $1,129,498 at December 31, 2023 and December 31, 2022, respectively | 60,739,699 | 49,474,903 |
Prepaid expenses and other current assets | 307,206 | 348,795 |
TOTAL CURRENT ASSETS | 61,092,144 | 50,244,909 |
Property and equipment, net | 122,500 | 103,591 |
Operating lease assets | 80,840 | 196,407 |
Finance lease assets | 38,664 | 51,920 |
OTHER ASSETS | ||
Cash surrender value of life insurance | 650,237 | 603,816 |
Deferred tax asset | 391,000 | 288,164 |
TOTAL OTHER ASSETS | 1,041,237 | 891,980 |
TOTAL ASSETS | 62,375,385 | 51,488,807 |
CURRENT LIABILITIES | ||
Cash overdraft | 168,543 | 0 |
Line of credit, net | 42,374,715 | 32,713,625 |
Drafts payable | 2,681,359 | 1,827,884 |
Note payable - current portion | 2,181,400 | 1,340,597 |
Note payable - stockholders and related parties - current portion | 310,000 | 109,000 |
Payroll Protection Program loan - current portion | 92,785 | 91,852 |
Operating lease obligation - current portion | 50,594 | 122,554 |
Finance lease obligation - current portion | 13,166 | 12,494 |
Accrued expenses and other current liabilities | 1,555,044 | 1,317,699 |
TOTAL CURRENT LIABILITIES | 49,427,606 | 37,535,705 |
LONG-TERM LIABILITIES | ||
Note payable, net of current portion | 4,684,157 | 5,946,324 |
Note payable - stockholders and related parties, net of current portion | 1,778,000 | 1,816,000 |
Payroll Protection Program loan, net of current portion | 31,139 | 123,924 |
Operating lease obligation, net of current portion | 30,246 | 73,853 |
Finance lease obligation, net of current portion | 27,393 | 40,559 |
TOTAL LONG-TERM LIABILITIES | 6,550,935 | 8,000,660 |
TOTAL LIABILITIES | 55,978,541 | 45,536,365 |
COMMITMENTS AND CONTINGENCIES (see Note 15) | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, par value $0.001 per share; 20 million shares authorized, 600,000 shares designated as Series A - convertible, 166,000 issued and outstanding at December 31, 2023 and 2022 | 166 | 166 |
Common stock, par value $0.001 per share; 100 million shares authorized, 2,905,016 shares issued and outstanding at December 31, 2023 and 2022 | 2,905 | 2,905 |
Additional paid in capital | 3,411,851 | 3,383,651 |
Retained earnings | 2,981,922 | 2,565,720 |
TOTAL STOCKHOLDERS' EQUITY | 6,396,844 | 5,952,442 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 62,375,385 | $ 51,488,807 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Allowance for credit losses | $ 1,501,593 | $ 1,129,498 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 2,905,016 | 2,905,016 |
Common stock, shares outstanding | 2,905,016 | 2,905,016 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, designated shares | 600,000 | 600,000 |
Preferred stock, shares issued | 166,000 | 166,000 |
Preferred stock, shares outstanding | 166,000 | 166,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
REVENUES | ||
TOTAL REVENUES | $ 9,723,010 | $ 8,156,537 |
OPERATING COSTS AND EXPENSES | ||
Interest | 3,798,046 | 2,328,004 |
Salaries and wages | 1,767,153 | 1,557,223 |
Commissions | 1,150,746 | 976,990 |
Provision for credit losses | 950,815 | 734,040 |
Professional fees | 310,951 | 374,144 |
Postage | 114,980 | 110,752 |
Insurance | 124,484 | 181,787 |
Other operating expenses | 792,942 | 881,276 |
TOTAL COSTS AND EXPENSES | 9,010,117 | 7,144,216 |
INCOME BEFORE INCOME TAXES | 712,893 | 1,012,321 |
PROVISION FOR INCOME TAXES | 180,491 | 206,190 |
NET INCOME | 532,402 | 806,131 |
PREFERRED SHARE DIVIDENDS | (116,200) | (89,191) |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 416,202 | $ 716,940 |
Net income per share attributable to common stockholders | ||
Basic | $ 0.14 | $ 0.25 |
Diluted | $ 0.13 | $ 0.21 |
Weighted average common shares outstanding | ||
Basic | 2,905,016 | 2,905,016 |
Diluted | 3,294,511 | 3,407,949 |
Finance Charges [Member] | ||
REVENUES | ||
TOTAL REVENUES | $ 8,285,805 | $ 6,757,780 |
Late Charges [Member] | ||
REVENUES | ||
TOTAL REVENUES | 1,067,914 | 1,038,927 |
Origination Fees [Member] | ||
REVENUES | ||
TOTAL REVENUES | $ 369,291 | $ 359,830 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Series A Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 99 | $ 2,905 | $ 2,682,995 | $ 1,848,780 | $ 4,534,779 |
Beginning balance, shares at Dec. 31, 2021 | 99,000 | 2,905,016 | |||
Series A Convertible Preferred Stock issued for cash | $ 40 | 399,960 | 400,000 | ||
Series A Convertible Preferred Stock issued for cash, shares | 40,000 | ||||
Series A Convertible Preferred Stock issued in exchange for note payable | $ 27 | 269,973 | 270,000 | ||
Series A Convertible Preferred Stock issued in exchange for note payable, shares | 27,000 | ||||
Warrants issued for services | 10,800 | 10,800 | |||
Options issued for services | 19,878 | 19,878 | |||
Paid-in capital | 45 | 45 | |||
Dividends paid on preferred stock | (89,191) | (89,191) | |||
Net income | 806,131 | 806,131 | |||
Ending balance, value at Dec. 31, 2022 | $ 166 | $ 2,905 | 3,383,651 | 2,565,720 | 5,952,442 |
Ending balance, shares at Dec. 31, 2022 | 166,000 | 2,905,016 | |||
Options issued for services | 28,200 | 28,200 | |||
Dividends paid on preferred stock | (116,200) | (116,200) | |||
Net income | 532,402 | 532,402 | |||
Ending balance, value at Dec. 31, 2023 | $ 166 | $ 2,905 | $ 3,411,851 | $ 2,981,922 | $ 6,396,844 |
Ending balance, shares at Dec. 31, 2023 | 166,000 | 2,905,016 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
NET INCOME | $ 532,402 | $ 806,131 |
ADJUSTMENTS TO RECONCILE NET INCOME TO CASH | ||
Depreciation | 25,292 | 22,283 |
Loss on disposal of property and equipment | 0 | 2,167 |
Amortization of right to use asset - operating lease | 115,567 | 103,585 |
Amortization of finance lease asset | 13,256 | 13,256 |
Provision for credit losses | 950,815 | 734,040 |
Amortization of loan origination fees | 104,701 | 70,198 |
Options issued for services | 28,200 | 19,878 |
Warrants issued for services | 0 | 10,800 |
Changes in operating assets and liabilities: | ||
Decrease in prepaid expenses and other current assets | 41,589 | 189,344 |
(Increase)/Decrease in deferred tax asset, net | (102,836) | 58,836 |
Increase/(Decrease) in drafts payable | 853,475 | (107,394) |
Increase/(Decrease) in accrued expenses and other current liabilities | 237,345 | (194,829) |
Decrease in operating lease liability | (115,567) | (103,585) |
Net cash provided by operating activities | 2,684,239 | 1,624,710 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Disbursements under premium finance contracts receivable, net | (12,215,611) | (3,534,670) |
Payments made on cash surrender value of life insurance | (46,421) | (43,939) |
Sale of property and equipment | 18,517 | 4,500 |
Purchases of property and equipment | (62,718) | (48,747) |
Net cash used in investing activities | (12,306,233) | (3,622,856) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash overdraft | 168,543 | (153,264) |
Proceeds of line of credit, net of repayments | 9,556,389 | 2,167,052 |
Proceeds from notes payable | 350,212 | 575,511 |
Repayment of notes payable | (771,576) | (288,400) |
Proceeds from notes payable - stockholders and related parties | 190,000 | 35,000 |
Repayment of notes payable - stockholders and related parties | (27,000) | (181,302) |
Repayment of finance lease obligation | (12,494) | (11,857) |
Proceeds from the sale of Series A Convertible Preferred Stock | 0 | 400,000 |
Repayment of PPP loan | (91,852) | (55,224) |
Paid-in capital | 0 | 45 |
Dividends paid on Series A Convertible Preferred Stock | (116,200) | (89,191) |
Net cash provided by financing activities | 9,246,022 | 2,398,370 |
NET CHANGE IN CASH | (375,972) | 400,224 |
CASH AT THE BEGINNING OF THE YEAR | 421,211 | 20,987 |
CASH AT THE END OF THE YEAR | 45,239 | 421,211 |
Cash paid during the year for: | ||
Income taxes | 78,046 | 395,240 |
Interest paid | 3,704,469 | 2,201,574 |
NON-CASH INVESTING AND FINANCING TRANSACTION: | ||
Debt exchanged for Series A Convertible Preferred Stock | 0 | 270,000 |
Operating lease assets obtained in exchange for lease liabilities | $ 0 | $ 71,038 |
Principles of Consolidation and
Principles of Consolidation and Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Description of Business | 1. Principles of Consolidation and Description of Business Standard Premium Finance Holdings, Inc. (“SPFH” or the “Holdings”) was incorporated on May 12, 2016, pursuant to the laws of the State of Florida. SPFH issued 100,000 100 Standard Premium Finance Management Corporation (“SPFMC” or the “Subsidiary”) was incorporated on April 23, 1991, pursuant to the laws of the State of Florida, to engage principally in the insurance premium financing business. The Subsidiary is a licensed insurance premium finance company in thirty-one states. On March 22, 2017, SPFH entered into an agreement of share exchange with SPFMC and the shareholders of SPFMC common stock to facilitate the formation of SPFH that will own all of the issued and outstanding shares of SPFMC. The shareholders of SPFMC agreed to exchange SPFMC common stock for newly issued shares of SPFH common stock. For accounting purposes, this transaction is being accounted for as a merger of entities under common control and has been treated as a recapitalization of SPFH with SPFMC as the accounting acquirer. The historical financial statements of the accounting acquirer became the financial statements of the Company. We did not recognize goodwill or any intangible assets in connection with the transaction. The accompanying consolidated financial statements include the accounts of SPFH and its wholly-owned subsidiary SPFMC. SPFH and its Subsidiary are collectively referred to as (“the Company”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Revenue Recognition Finance charges on insurance premium installment contracts are initially recorded as unearned interest and are credited to income monthly over the term of the finance agreement. An initial service fee, where permissible, and the first month’s interest, on a pro rata basis, are recognized as income at the inception of a contract. The initial service fee can only be charged once to an insured in a twelve-month period. In accordance with industry practice, finance charges are recognized as income using the “Rule of 78s” method of amortizing finance charge income, which does not materially differ from the interest method of amortizing finance charge income on short term receivables. Late charges are recognized as income when charged. Unearned interest is netted against Premium Finance Contracts and Related Receivables on the balance sheets for reporting purposes. The provisions of Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (“ASC 606”) provide guidance on the recognition, presentation, and disclosure of revenue in financial statements. ASC 606 outlines the basic criteria that must be met to recognize revenue and provides guidance for disclosure related to revenue recognition policies. ASC 606 requires revenue to be recognized upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for services that are distinct and accounted for as separate performance obligations. In such cases, revenue would be recognized at the time of delivery or over time for each performance of service. However, ASC 606 exempts items under ASC 835-30 and ASC 310-20 (i.e. finance charges, late charges and origination fee income for the Company). Cash, Cash Equivalents, and Cash Overdraft The Company considers short-term interest-bearing investments with initial maturities of three months or less to be cash equivalents. The Company has no The Company experienced a cash overdraft of $ 168,543 Premium Finance Contracts and Related Receivable The Company finances insurance premium on policies primarily for commercial enterprises. The term of each contract varies from three to twelve monthly payments. Repayment terms are structured such that the contracts will be repaid within the term of the underlying insurance policy, generally less than one year. The contracts are secured by the unearned premium of the insurance carrier which is obligated to pay the Company any unearned premium in the event the insurance policy is cancelled pursuant to a power of attorney contained in the finance contract. As of December 31, 2023 and 2022, the amount of unearned premium on open and cancelled contracts totaled $ 87,618,261 71,315,354 17.0 15.3 Allowance for Credit Losses The carrying amount of the Premium Finance Contracts (“Contracts”) is reduced by an allowance for credit losses that are maintained at a level which, in management’s judgment, is adequate to absorb credit losses inherent in the Contracts. The amount of the allowance is based upon management’s evaluation of the collectability of the Contracts, including the nature of the accounts, credit concentration, trends, historical data, specific impaired Contracts, current and forecasted economic conditions, and other risks inherent in the Contracts. The allowance is increased by a provision for credit losses, which is charged to expense, and reduced by charge-offs, net of recovery. To estimate expected credit losses on loans that exhibit similar risk characteristics, the Company considers historical loss information (updated for current conditions and reasonable and supportable forecasts that affect the expected collectability of the amortized cost basis pool) using a loss-rate approach. The Company monitors the A.M. Best rating for insurance carriers whose policies are being financed as a factor of the quality of its contract receivables. As of December 31, 2023, and December 31, 2022, the Company did not expect any material degradation to the ratings of the insurance carriers it currently underwrites or anticipates underwriting in a way that would affect the allowance for credit losses. Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: Furniture and equipment 5 7 Computer equipment and software 3 5 Leasehold improvements 10 Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include assumptions used in valuation of deferred tax assets, allowance for credit losses, depreciable lives of property and equipment, and valuation of stock-based compensation. Amortization of Line of Credit Costs Amortization of line of credit costs is computed using the straight-line method over the life of the loan. Concentration of Credit and Financial Instrument Risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and accounts receivable from customers, agents, and insurance companies. The Company maintains its cash balances at two banks. Accounts at this financial institution are insured by the Federal Deposit Insurance Corporation up to $ 250,000 250,200 482,479 Schedule of reconciliation between uninsured balances and cash per the consolidated balance sheet December 31, 2023 December 31, 2022 Uninsured Balance $ 250,200 $ 482,479 Plus: Insured balances 250,000 250,000 Plus: Balances at other institutions that do not exceed FDIC limit 45,239 17,758 Plus: Cash overdraft 168,543 — Less: Outstanding checks (668,743 ) (329,026 ) Cash per Consolidated Balance Sheet $ 45,239 $ 421,211 The Company controls its credit risk in accounts receivable through credit standards, limits on exposure, by monitoring the financial condition of insurance companies, by adhering to statutory cancellation policies, and by monitoring and pursuing collections from past due accounts. We cancel policies at the earliest permissible date allowed by the statutory cancellation regulations. Approximately 61 59 10 12 10 12 10 9 Cash Surrender Value of Life Insurance The Company is the owner and beneficiary of a life insurance policy on its CEO. The cash surrender value relative to the policy in place was $ 650,237 603,816 Fair Value of Financial Instruments The Company’s carrying amounts of financial instruments as defined by Financial Accounting Standards Board (“FASB”) ASC 825, “Disclosures about Fair Value of Financial Instruments”, including premium finance contracts and related receivables, prepaid expenses, drafts payable, accrued expenses and other current liabilities, approximate their fair value due to the relatively short period to maturity for these instruments. The fair value of the line of credit and notes payable are based on current rates at which the Company could borrow funds with similar remaining maturities and the carrying value approximates fair value. Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. Uncertain tax positions are recognized only when the Company believes it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company has no material unrecognized tax benefits and no adjustments to its consolidated financial position, results of operations or cash flows were required as of December 31, 2023 and 2022. The Company filed consolidated tax returns for the years ended December 31, 2023 and 2022, which are subject to examination by federal and state tax jurisdictions. The Company’s tax returns for the previous three years remain open for audit by the respective tax jurisdictions. No income tax returns are currently under examination by taxing authorities. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. The Company did no Stock-Based Compensation The Company accounts for stock-based compensation in accordance with FASB ASC Topic No. 718, “Stock Compensation,” which establishes the requirements for expensing equity awards. The Company measures and recognizes as compensation expense the fair value of all share-based payment awards based on estimated grant date fair values. Our stock-based compensation includes issuances made to directors, executives, employees and consultants, which includes employee stock options related to our 2019 Equity Incentive Plan and stock warrants. The determination of fair value involves a number of significant estimates. We use the Black-Scholes option pricing model to estimate the value of employee stock options and stock warrants which requires a number of assumptions to determine the model inputs. These include the expected volatility of our stock and employee exercise behavior which are based expectations of future developments over the term of the option. Earnings per Common Share The Company accounts for earnings (loss) per share in accordance with FASB ASC Topic No. 260 - 10 , “Earnings Per Share”, For each of the years ended December 31, 2023 and 2022, stock options to purchase 207,400 1,035,000 93,700 93,700 10,000 10,000 Schedule of effects of the outstanding options and warrants on earnings per share December 31, 2023 December 31, 2022 Options included in the calculation of diluted EPS 197,400 187,400 Nonvested options 10,000 20,000 Total options outstanding 207,400 207,400 Warrants included in the calculation of diluted EPS 635,000 635,000 Vested but antidilutive warrants 400,000 400,000 Total warrants outstanding 1,035,000 1,035,000 Leases The Company recognizes and measures its leases in accordance with ASC Topic 842, “Leases” Recent Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) - Accounting for Convertible Instruments and Contracts on an Entity’s Own Equity. The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exceptions. The ASU also simplifies the diluted net income per share calculation in certain areas. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and early adoption is permitted. The Company did not experience any impact on the consolidated financial statements from the adoption of the standard. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments," which replaces the existing "incurred loss" model for recognizing credit losses with an "expected loss" model referred to as the CECL model. Under the CECL model, the Company is required to present certain financial assets carried at amortized cost, such as insurance premium finance loans held for investment, at the net amount expected to be collected. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company adopted this standard in the first fiscal quarter of 2023. There has been no impact on current earnings due to the adoption of this standard. |
Premium Finance Contracts, Rela
Premium Finance Contracts, Related Receivable and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Premium Finance Contracts Related Receivable And Allowance For Credit Losses | |
Premium Finance Contracts, Related Receivable and Allowance for Credit Losses | 3. Premium Finance Contracts, Related Receivable and Allowance for Credit Losses Premium Finance Contracts and Related Receivable represent monthly payments due on insurance premium finance contracts. The Company finances insurance policies over periods from three months to one year for businesses and consumers who make an initial down payment of, on average, 25 percent of the insurance policy amounts. The entire amount of the contract is recorded including amounts due for finance charges and services charges. These receivables are reported net of unearned interest for financial statements purposes. Amounts due from agents represent balances related to (1) an agent’s unearned commission due to a policy cancellation and (2) down payments collected by the agents on behalf of the insured, which are due to us. Receivables from insurance premium finance contracts cancelled are due from the insurance companies. At December 31, 2023 and 2022, premium finance contract and agents’ receivable consists of the following: Schedule of premium finance contract and agents’ receivable Description December 31, 2023 December 31, 2022 Insurance premium finance contracts outstanding $ 57,769,501 $ 45,520,349 Insurance premium finance contracts cancelled 5,832,574 6,005,601 Insurance premium finance contracts gross 63,602,075 51,525,950 Amounts due from agents 804,131 645,648 Less: Unearned interest (2,164,914 ) (1,567,197 ) Insurance premium finance contracts net 62,241,292 50,604,401 Less: Allowance for credit losses (1,501,593 ) (1,129,498 ) Total $ 60,739,699 $ 49,474,903 The allowance for credit losses at December 31, 2023 and December 31, 2022 are as follows: Schedule of allowance for credit losses December 31, 2023 December 31, 2022 Allowance for premium finance contracts $ 1,336,157 $ 1,000,000 Allowance for amounts due from agents 165,436 129,498 Total allowance for credit losses $ 1,501,593 $ 1,129,498 Activity in the allowance for credit losses for the years ended December 31, 2023 and December 31, 2022 are as follows: Schedule of allowance for credit losses December 31, 2023 December 31, 2022 Balance at the beginning of the year $ 1,129,498 $ 1,193,757 Current year provision 1,669,000 1,347,475 Direct write-downs charged against the allowance (1,639,416 ) (1,513,814 ) Recoveries of amounts previously charged off 342,511 102,080 Balance at end of the year $ 1,501,593 $ 1,129,498 The Company maintains its allowance at gross amounts, which includes allowances for write-offs of unearned revenues. Provisions and write-offs per the note disclosures above are displayed at gross amounts, which include provisions and write-offs of unearned revenues. These write-offs are appropriately split between the principal (i.e. provision for credit losses) and interest/fee (i.e. contra-revenue) portions on the income statement. The following table shows a reconciliation between the total provision per the note disclosures and provision for credit losses on the consolidated statement of operations: Schedule of provision for credit losses December 31, 2023 December 31, 2022 Current additions to the allowance $ 1,669,000 $ 1,347,475 Less: Contra-revenues (718,185 ) (613,435 ) Provision for credit losses $ 950,815 $ 734,040 The aging analyses of past-due contract receivables as of December 31, 2023 and December 31, 2022 are as follows: Schedule of aging analyses of past-due contract receivables As of December 31, 2023 30–59 Days 60–89 Days 90-119 Days Greater Than 120 Days Total Past-Due Current Grand Total Premium finance contracts: Outstanding $ 147,915 $ 2,241 $ 7,536 $ 30,086 $ 187,778 $ 57,581,723 $ 57,769,501 Cancelled 1,041,232 976,535 456,897 1,913,339 4,388,003 1,444,571 5,832,574 Total $ 1,189,147 $ 978,776 $ 464,433 $ 1,943,425 $ 4,575,781 $ 59,026,294 $ 63,602,075 As of December 31, 2022 30–59 Days 60–89 Days 90-119 Days Greater Than 120 Days Total Past-Due Current Grand Total Premium finance contracts: Outstanding $ 175,972 $ 61,678 $ 22,360 $ 11,270 $ 271,280 $ 45,249,069 $ 45,520,349 Cancelled 1,363,841 850,939 340,619 720,429 3,275,828 2,729,773 6,005,601 Total $ 1,539,813 $ 912,617 $ 362,979 $ 731,699 $ 3,547,108 $ 47,978,842 $ 51,525,950 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, Net At December 31, 2023 and 2022, the Company’s property and equipment consists of the following: Schedule of property and equipment December 31, 2023 December 31, 2022 Computer Software $ 26,207 $ 26,207 Automobile 155,881 128,614 Furniture & Fixtures 14,273 14,273 Leasehold Improvements 116,811 116,811 Computer Equipment 73,145 62,494 Property and equipment, gross 386,317 348,399 Accumulated depreciation (263,817 ) (244,808 ) Property and equipment, net $ 122,500 $ 103,591 The Company recorded depreciation expense in other operating expenses of $ 25,292 22,283 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 5. Leases The Company accounts for leases in accordance with ASC Topic 842. The Company used its incremental borrowing rate of 5.25 Office lease 2 7,048 Secure facility lease 5 1,233 3 1,418 4 48,979 Copier lease 68,799 5.25 1,116 Hardware lease 664 22,059 Server lease 5 66,281 65,801 5.25 1,249 Maturities of lease liabilities as of December 31, 2023 were as follows: Schedule of maturities of lease liabilities 2024 $ 68,308 2025 45,918 2026 13,879 Total lease payments 128,105 Less: imputed interest (6,706 ) Present value of lease liabilities $ 121,399 Supplemental balance sheet information related to leases is as follows: Schedule of leases Leases Classification December 31, 2023 December 31, 2022 Right-of-use assets Operating lease assets $ 80,840 $ 196,407 Server lease Finance lease assets 38,664 51,920 Total lease assets $ 119,504 $ 248,327 Current operating lease liability Current operating lease liabilities $ 50,594 $ 122,554 Non-current operating lease liability Long-term operating lease liabilities 30,246 73,853 Total operating lease liabilities $ 80,840 $ 196,407 Current finance lease liability Current finance lease liabilities $ 13,166 $ 12,494 Non-current finance lease liability Long-term finance lease liabilities 27,393 40,559 Total finance lease liabilities $ 40,559 $ 53,053 The weighted-average remaining lease term was 1.97 years and 2.40 years as of December 31, 2023 and December 31, 2022, respectively. For the years ended December 31, 2023 and 2022, the total operating lease costs was $ 123,127 and $ 114,086 , respectively. As of December 31, 2023 and 2022, operating lease payments include $ 27,490 and $ 97,978 , respectively, of cost related to options to extend lease terms that are reasonably certain of being exercised. |
Drafts Payable
Drafts Payable | 12 Months Ended |
Dec. 31, 2023 | |
Drafts Payable | |
Drafts Payable | 6. Drafts Payable Drafts payable outstanding represent unpaid drafts that have not been disbursed by our senior lender as of the reporting date on insurance premium finance contracts received by the Company prior to the reporting date. As of December 31, 2023 and 2022, the draft payable balances are $ 2,681,359 and $ 1,827,884 , respectively. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2023 | |
Line Of Credit | |
Line of Credit | 7. Line of Credit Relationship with First Horizon Bank (“FHB”) On February 3, 2021, the Company entered into an exclusive twenty-four month loan agreement with First Horizon Bank, our senior lender, for a revolving line of credit in the amount of $ 35,000,000 , which was immediately funded for $ 25,974,695 to pay off the prior line of credit. On this date, the prior line of credit was fully repaid and terminated. The Company recorded $ 180,350 of loan origination costs. In October 2021, the Company increased its line of credit with First Horizon Bank from $ 35,000,000 to $ 45,000,000 . The Company recorded $ 25,771 of line of credit costs related to the credit increase. In November 2022, the Company extended the maturity on its line of credit agreement with FHB until November 30, 2025. This extension also changed the Index Rate of the line of credit from 30-Day Libor to 30-Day Secured Overnight Financing Rate (“SOFR”) in anticipation of the phase-out of Libor on June 30, 2023. The Company recorded $ 117,228 of line of credit costs related to this extension, which is included in the line of credit balance in the consolidated balance sheet at December 31, 2023. At December 31, 2023 and December 31, 2022, the advance rate was 85 % of the aggregate unpaid balance of the Company’s eligible accounts receivable. The line of credit is secured by all Company assets and is personally guaranteed by our CEO and two directors of the Company. The line of credit bears interest at 30-Day SOFR plus 2.55-2.96% per annum (8.09% and 6.87% at December 31, 2023 and 2022, respectively). The terms of the Line of Credit agreement provide for a minimum interest of 3.35% when the 30-day SOFR falls below 0.50%. As of December 31, 2023 and 2022, the amount of principal outstanding on the line of credit was $ 42,377,736 and $ 32,821,347 , respectively, and is reported on the consolidated balance sheet net of $ 3,021 and $ 107,722 , respectively, of unamortized loan origination fees. Interest expense on this line of credit for the years ended December 31, 2023 and 2022 totaled approximately $ 3,023,000 and $ 1,554,000 , respectively. The Company recorded amortized loan origination fee for the years ended December 31, 2023 and 2022 of $ 104,701 and $ 70,198 , respectively. For the years ended December 31, 2023 and 2022, the Company paid a fee based on the unused portion of the line of credit totaling $ 17,272 and $ 29,956 , respectively, which is included in interest expense. The Company had availability on this line of credit of $ 2,662,264 as of December 31, 2023. The Company’s agreements with FHB contain certain financial covenants and restrictions. Under these restrictions, all the Company’s assets are pledged to secure the line of credit, the Company must maintain certain financial ratios such as an adjusted tangible net worth ratio, interest coverage ratio and senior leverage ratio. The loan agreement also provides for certain covenants such as audited financial statements, notice of change of control, budget, permission for any new debt, copy of filings with regulatory bodies, and minimum balances. On November 14, 2023, the Company executed an amendment of the loan agreement, which provided a waiver of default on its Interest Coverage Ratio as of September 30, 2023. The amendment also reduced the Minimum Interest Coverage Ratio for the following four quarters through September 30, 2024. Management believes it was in compliance with the applicable debt covenants as of December 31, 2023 and December 31, 2022. |
PPP Loan
PPP Loan | 12 Months Ended |
Dec. 31, 2023 | |
Ppp Loan | |
PPP Loan | 8. PPP Loan On April 18, 2020, the Company entered into a $ 271,000 loan with Woodforest National Bank, under a program administered by the Small Business Administration (“SBA”) as part of the Paycheck Protection Program (“PPP”) approved under the “Coronavirus Aid, Relief, and Economic Security Act” (“CARES Act”) (Pub. L. No. 116-136). The loan matures in two ( 2 ) years and accrues interest at 1 % from the origination of the loan. After a 6-month deferral, interest and principal payments are due monthly. The Note is subject to partial or full forgiveness, the terms of which are dictated by the SBA, the CARES Act, section 7(a)(36) of the Small Business Act, all rules and regulations promulgated thereunder including, without limitation, Interim Final Rule RIN 3245-AH34, subsequent SBA guidance, and the Code of Federal Regulations. On June 22, 2022, the Company executed a loan modification with Woodforest National Bank (“WNB”) allowing for the repayment of the PPP loan to WNB. The modified loan has a maturity date of April 18, 2025 with a 1 % fixed interest rate and monthly principal and interest payments of $ 7,801 beginning on May 18, 2022. For the years ended December 31, 2023 and December 31, 2022, the Company paid interest on this loan of $ 1,761 and $ 7,185 , respectively, which is included in interest expense. As of December 31, 2023 and December 31, 2022, the balance of the PPP loan is as follows: Schedule of balance of the PPP loan 2023 2022 Total PPP loan $ 123,924 $ 215,776 Less current maturities (92,785 ) (91,852 ) Long-term maturities $ 31,139 $ 123,924 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable | 9. Notes Payable At December 31, 2023 and 2022 the balances of long-term unsecured notes to unrelated parties are as follows: Schedule of long-term unsecured notes to unrelated parties December 31, 2023 December 31, 2022 Total notes payable - Others $ 6,865,557 $ 7,286,921 Less current maturities (2,181,400 ) (1,340,597 ) Long-term maturities $ 4,684,157 $ 5,946,324 Scheduled future maturities of notes payable are as follows: Schedule of future maturities of notes payable Maturities due within: 1 year $ 2,181,400 $ 1,340,597 2 years 2,993,500 1,857,400 3 years 1,393,157 2,586,267 4 years 197,500 1,440,157 5 years and beyond 100,000 62,500 Total maturities $ 6,865,557 $ 7,286,921 These are notes payable to individuals. The notes have interest payable monthly, ranging from 6 % to 8 % per annum and are unsecured and subordinated. The principal is due on various dates through March 31, 2028. The notes roll-over at periods from one to four years on maturity unless the note holder requests repayment through written instructions within ninety days prior to the expiration date. Notes totaling $ 1,243,021 and $ 2,441,523 were rolled over during the years ended December 31, 2023 and 2022, respectively. Interest expense on these notes totaled approximately $ 496,000 and $ 507,000 during the year ended December 31, 2023 and 2022, respectively. The Company received proceeds on these notes of $ 350,212 and $ 575,511 for the years ended December 31, 2023 and 2022, respectively. The Company 771,576 288,400 250,000 25,000 10.00 |
Notes Payable _ Stockholders an
Notes Payable – Stockholders and Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
Notes Payable Stockholders And Related Parties | |
Notes Payable – Stockholders and Related Parties | 10. Notes Payable – Stockholders and Related Parties At December 31, 2023 and 2022, the balances of long-term notes payable to stockholders and related parties are as follows: Schedule of long-term notes payable to stockholders and related parties December 31, 2023 December 31, 2022 Total notes payable - Related parties $ 2,088,000 $ 1,925,000 Less current maturities (310,000 ) (109,000 ) Long-term maturities $ 1,778,000 $ 1,816,000 Scheduled future maturities of notes payable are as follows: Schedule of future maturities of notes payable Maturities due within: 1 year $ 310,000 $ 109,000 2 years 316,000 775,000 3 years 885,000 166,000 4 years 72,000 875,000 5 years 505,000 — Total maturities $ 2,088,000 $ 1,925,000 These are notes payable to stockholders and related parties. The notes have interest payable monthly of 8 % per annum and are unsecured and subordinated. The principal is due on various dates through March 31, 2028. The notes roll-over at periods from one to four years on maturity unless the note holder requests repayment through written instructions within ninety days prior to the expiration date. Notes totaling $ 587,000 and $ 862,000 were rolled over during the years ended December 31, 2023 and 2022, respectively. Interest expense on these notes totaled approximately $ 154,000 and $ 156,000 during the year ended December 31, 2023 and 2022, respectively. The Company received proceeds on these notes of $ 190,000 and $ 35,000 for the years ended December 31, 2023 and 2022, respectively. The Company repaid principal on these notes of $ 27,000 and $ 181,302 for the years ended December 31, 2023 and 2022, respectively. In January 2022, the Company exchanged $ 20,000 of these notes payable for 2,000 shares of Series A Convertible Preferred Stock at a price of $ 10.00 per share. There were no gains or losses on this exchange. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The provision for income taxes for the years ended December 31, 2023 and 2022, consisted of the following: Schedule of provision for income taxes For the Year Ended December 31, 2023 2022 Statutory rate applied to income before income taxes $ 193,962 $ 256,841 Increase in income taxes results from: Temporary differences (1,971 ) (57,772 ) Non-deductible expenses (11,500 ) 7,121 Change in valuation allowance — — Income tax expense $ 180,491 $ 206,190 Schedule of Effective Income Tax Rate Reconciliation 2023 2022 Income tax benefit at US statutory rate of 21% 21.00 % 21.00 % Income tax benefit - state 3.80 % 4.37 % Non-deductible expense -1.61 % 0.70 % Change in temporary differences -0.28 % -5.71 % Change in valuation allowance 0.00 % 0.00 % Income tax expense 22.91 % 20.36 % Schedule of Deferred Tax Assets and Liabilities 2023 2022 Deferred tax assets: Allowance for uncollectible $ 337,080 $ 253,715 Stock compensation 28,336 11,257 Book to tax depreciation 25,584 23,192 Gross deferred tax assets 391,000 288,164 Valuation allowance — — Net deferred tax assets $ 391,000 $ 288,164 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity | 12. Equity Preferred Stock As of December 31, 2023 and 2022, the Company was authorized to issue 20 million shares of preferred stock with a par value of $ 0.001 per share, of which 600,000 shares had been designated as Series A convertible preferred stock. As of each of December 31, 2023 and 2022, there were 166,000 shares of Series A convertible preferred stock issued and outstanding. In the event of any liquidation, dissolution or winding up of the Company, the holders of preferred stock shall be entitled to receive, prior and in preference to any distribution of any of the assets of the Company to the holders of common stock, an amount equal to $ 10 for each share of preferred stock, plus all unpaid dividends that have been accrued, accumulated or declared. As of December 31, 2023, the total liquidation preference on the preferred stock is $ 1,689,050 . The Company may redeem the preferred stock from the holders at any time following the second anniversary of the closing of the original purchase of the preferred stock. The Series A convertible preferred stock can be converted to common stock at 80% of the prevailing market price over the previous 30-day period at the option of the Company. Holders of preferred stock are entitled to receive preferential cumulative dividends, only if declared by the board of directors, at a rate of 7% per annum per share of the liquidation preference amount of $ 10 per share. During the years ended December 31, 2023 and 2022, the Board of Directors has declared and paid dividends on the preferred stock of $ 116,200 and $ 89,191 , respectively. As of each of December 31, 2023 and 2022, preferred dividends are in arrears by $ 29,050 . December 31, 2022 dividends in arrears were declared and paid in January 2023. December 31, 2023 dividends in arrears were declared and paid in January 2024. In January 2022, the Company exchanged $ 20,000 of its notes payable for 2,000 shares of Series A Convertible Preferred Stock at a price of $ 10.00 per share. On April 30, 2022, the Company issued 65,000 shares of Series A Convertible Preferred Stock for $ 400,000 cash and exchanged for $ 250,000 of its notes payable at a price of $ 10.00 per share. There were no gains or losses on these exchanges. Common Stock As of both December 31, 2023 and 2022, the Company was authorized to issue 100 million shares of common stock with a par value of $ 0.001 per share, of which 2,905,016 shares were issued and outstanding. Stock Options In 2019, the Company’s Board of Directors approved the creation of the 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan provides for the issuance of incentive stock options to designated employees, certain key advisors and non-employee members of the Board of Directors with the opportunity to receive grant awards to acquire, in the aggregate, up to 300,000 shares of the Company’s common stock. The following table summarizes information about employee stock options outstanding at December 31, 2023: Schedule of employee stock options Outstanding Options Vested Options Exercise Price Number Outstanding at December 31, 2023 Weighted Average Remaining Life Weighted Average Exercise Price Number Exercisable at December 31, 2023 Weighted Average Remaining Life Weighted Average Exercise Price $ 0.80 187,400 6.17 $ 0.80 187,400 6.17 $ 0.80 $ 4.50 10,000 8.50 $ 4.50 5,000 8.50 4.50 $ 4.95 10,000 3.50 $ 4.95 5,000 3.50 4.95 Outstanding options 207,400 6.15 $ 1.18 197,400 6.15 $ 1.00 A summary of information regarding the stock options outstanding is as follows: Schedule of stock options outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Intrinsic Value Outstanding at December 31, 2021 187,400 $ 0.80 8.2 years — Issued 20,000 $ 4.73 7.5 years — Exercised — — — — Outstanding at December 31, 2022 207,400 $ 1.18 7.15 years $ 1,091,236 Issued — — — — Exercised — — — — Outstanding at December 31, 2023 207,400 $ 1.18 6.15 years $ 705,224 Exercisable at December 31, 2023 197,400 $ 1.00 6.16 years $ 704,924 On June 29, 2022 20,000 of the above options were granted to designated Officers. Half of these options vested on June 29, 2023 and the other half vest on June 29, 2024. During the years ended December 31, 2023 and 2022, the Company recognized $ 28,200 and $ 19,878 , respectively, of stock option expense. The fair value of the stock options originated in 2022 was determined using the Black Scholes Option Pricing Model based on the following assumptions: Schedule of stock options valuation assumptions Assumptions $4.50 Strike $4.95 Strike (1) dividend yield of 0 % 0 % (2) expected volatility of 50 % 50 % (3) risk-free interest rate of 3.10 % 3.10 % (4) expected life of 10 years 5 years (5) estimated fair value $ 4.50 $ 4.50 Stock Warrants On June 1, 2022 the Company issued 60,000 of previously authorized warrants for the purchase of common stock. The 60,000 Class W4A warrants are issued at $ .001 Par Value and exercisable at a strike price of $ 4 for a period of five ( 5 ) years. A summary of information regarding the stock warrants outstanding is as follows: Schedule of stock warrants Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Intrinsic Value Outstanding at December 31, 2021 975,000 $ 7.28 3.5 years — Issued 60,000 $ 4.00 — — Exercised — — — — Outstanding at December 31, 2022 1,035,000 $ 7.09 2.6 years $ 1,549,400 Issued — — — — Exercised — — — — Outstanding at December 31, 2023 1,035,000 $ 7.09 1.6 years $ 355,600 Exercisable at December 31, 2023 1,035,000 $ 7.09 1.6 years $ 355,600 The above outstanding warrants were issued on June 29, 2022, June 11, 2021 and April 1, 2020, to designated Officers, Directors, and consultants with a total fair value of $ 10,800 , $ 9,275 and $ 27,200 on the grant date, respectively. The warrants vested immediately. During the years December 31, 2023 and 2022, the Company recognized $ 0 and $ 10,800 , respectively, of stock warrant expense. The fair value of the stock options originated in 2022 was determined using the Black Scholes Option Pricing Model based on the following assumptions: Schedule of stock options valuation assumptions Assumptions Grant Date (1) dividend yield of 0 % (2) expected volatility of 50 % (3) risk-free interest rate of 2.94 % (4) expected life of 5 years (5) estimated fair value $ 1.17 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | 13. Employee Benefit Plan The Company maintains a qualified retirement profit sharing plan and a 401(k) retirement plan, which covers substantially all employees. Employees ratably vest in the plan over six years and the Company’s contributions to the profit sharing plan are discretionary. The Company matches a portion of employee contributions to the 401(k) plan. Total 401(k) matching and profit sharing plan contributions of $ 30,688 and $ 50,000 were made for the years ended December 31, 2023 and 2022, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions The Company has engaged in transactions with related parties primarily shareholders, officers and directors and their relatives that involve financing activities and services to the Company. The following discussion summarizes its activities with related parties. 14. Related Party Transactions Office lease As discussed in Note 5, the Company entered into a three-year lease for its office space in Miami, FL with an entity that is controlled by our CEO and related parties. The Company leases approximately 3,000 square feet of office space. Line of credit As discussed in Note 7, the Company secured its primary financing in part through the assistance of our CEO and two board members who guaranteed the loan to the financial institution. The current line of credit with First Horizon Bank was initiated at $ 35,000,000 . In October 2021, the Company increased its line of credit with First Horizon Bank from $ 35,000,000 to $ 45,000,000 . In November 2022, the Company extended the maturity of its line of credit with First Horizon Bank until November 30, 2025. Notes Payable As discussed in Note 10, the Company has been advanced funds by its shareholders. As of December 31, 2023 and 2022, the amounts advanced were $ 2,088,000 and $ 1,925,000 , respectively. Stock Options As discussed in Note 12, on March 1, 2020, the Company issued 187,400 stock options, of which 167,400 stock options were issued to officers and directors under the terms of the 2019 Equity Incentive Plan. The impact on earnings from this transaction was a total of $69,338, amortizing over 24 months at a rate of $2,889 per month . These options were fully amortized on February 28, 2022. This transaction also increased additional paid-in capital over the same period. On June 29, 2022, the Company issued 20,000 stock options to officers and directors under the terms of the 2019 Equity Incentive Plan. The impact on future earnings from this transaction is a total of $56,400, which is being amortized over 24 months at a rate of $2,350 per month . This transaction will also increase additional paid-in capital over the same period at the same rate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies On June 29, 2022, the Company signed “at-will” employment agreements with its CEO and CFO, which include fixed salary increases over the next five years and performance-based equity compensation. At the execution of the agreements, the Company issued a total of 20,000 stock options for the purchase of common stock pursuant to its 2019 Equity Incentive Plan. These stock options vest over a two-year period. From time-to-time, we may be involved in litigation or be subject to claims arising out of our operations or content appearing on our websites in the normal course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on our company because of defense and settlement costs, diversion of management resources and other factors. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events In January 2024, the Company issued $ 42,000 of notes payable, repaid $ 15,000 of notes payable, and issued $ 30,000 of notes payable (stockholders and related party). In February 2024, the Company repaid $ 17,000 of notes payable and issued $ 260,000 of notes payable (stockholders and related party). In January 2024, the Board of Directors declared and paid dividends on the Series A convertible preferred stock of $ 29,050 . In February 2024, the Company renewed its lease on its principal office (see Note 5). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition Finance charges on insurance premium installment contracts are initially recorded as unearned interest and are credited to income monthly over the term of the finance agreement. An initial service fee, where permissible, and the first month’s interest, on a pro rata basis, are recognized as income at the inception of a contract. The initial service fee can only be charged once to an insured in a twelve-month period. In accordance with industry practice, finance charges are recognized as income using the “Rule of 78s” method of amortizing finance charge income, which does not materially differ from the interest method of amortizing finance charge income on short term receivables. Late charges are recognized as income when charged. Unearned interest is netted against Premium Finance Contracts and Related Receivables on the balance sheets for reporting purposes. The provisions of Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (“ASC 606”) provide guidance on the recognition, presentation, and disclosure of revenue in financial statements. ASC 606 outlines the basic criteria that must be met to recognize revenue and provides guidance for disclosure related to revenue recognition policies. ASC 606 requires revenue to be recognized upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for services that are distinct and accounted for as separate performance obligations. In such cases, revenue would be recognized at the time of delivery or over time for each performance of service. However, ASC 606 exempts items under ASC 835-30 and ASC 310-20 (i.e. finance charges, late charges and origination fee income for the Company). |
Cash, Cash Equivalents, and Cash Overdraft | Cash, Cash Equivalents, and Cash Overdraft The Company considers short-term interest-bearing investments with initial maturities of three months or less to be cash equivalents. The Company has no The Company experienced a cash overdraft of $ 168,543 |
Premium Finance Contracts and Related Receivable | Premium Finance Contracts and Related Receivable The Company finances insurance premium on policies primarily for commercial enterprises. The term of each contract varies from three to twelve monthly payments. Repayment terms are structured such that the contracts will be repaid within the term of the underlying insurance policy, generally less than one year. The contracts are secured by the unearned premium of the insurance carrier which is obligated to pay the Company any unearned premium in the event the insurance policy is cancelled pursuant to a power of attorney contained in the finance contract. As of December 31, 2023 and 2022, the amount of unearned premium on open and cancelled contracts totaled $ 87,618,261 71,315,354 17.0 15.3 |
Allowance for Credit Losses | Allowance for Credit Losses The carrying amount of the Premium Finance Contracts (“Contracts”) is reduced by an allowance for credit losses that are maintained at a level which, in management’s judgment, is adequate to absorb credit losses inherent in the Contracts. The amount of the allowance is based upon management’s evaluation of the collectability of the Contracts, including the nature of the accounts, credit concentration, trends, historical data, specific impaired Contracts, current and forecasted economic conditions, and other risks inherent in the Contracts. The allowance is increased by a provision for credit losses, which is charged to expense, and reduced by charge-offs, net of recovery. To estimate expected credit losses on loans that exhibit similar risk characteristics, the Company considers historical loss information (updated for current conditions and reasonable and supportable forecasts that affect the expected collectability of the amortized cost basis pool) using a loss-rate approach. The Company monitors the A.M. Best rating for insurance carriers whose policies are being financed as a factor of the quality of its contract receivables. As of December 31, 2023, and December 31, 2022, the Company did not expect any material degradation to the ratings of the insurance carriers it currently underwrites or anticipates underwriting in a way that would affect the allowance for credit losses. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: Furniture and equipment 5 7 Computer equipment and software 3 5 Leasehold improvements 10 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include assumptions used in valuation of deferred tax assets, allowance for credit losses, depreciable lives of property and equipment, and valuation of stock-based compensation. |
Amortization of Line of Credit Costs | Amortization of Line of Credit Costs Amortization of line of credit costs is computed using the straight-line method over the life of the loan. |
Concentration of Credit and Financial Instrument Risk | Concentration of Credit and Financial Instrument Risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and accounts receivable from customers, agents, and insurance companies. The Company maintains its cash balances at two banks. Accounts at this financial institution are insured by the Federal Deposit Insurance Corporation up to $ 250,000 250,200 482,479 Schedule of reconciliation between uninsured balances and cash per the consolidated balance sheet December 31, 2023 December 31, 2022 Uninsured Balance $ 250,200 $ 482,479 Plus: Insured balances 250,000 250,000 Plus: Balances at other institutions that do not exceed FDIC limit 45,239 17,758 Plus: Cash overdraft 168,543 — Less: Outstanding checks (668,743 ) (329,026 ) Cash per Consolidated Balance Sheet $ 45,239 $ 421,211 The Company controls its credit risk in accounts receivable through credit standards, limits on exposure, by monitoring the financial condition of insurance companies, by adhering to statutory cancellation policies, and by monitoring and pursuing collections from past due accounts. We cancel policies at the earliest permissible date allowed by the statutory cancellation regulations. Approximately 61 59 10 12 10 12 10 9 |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance The Company is the owner and beneficiary of a life insurance policy on its CEO. The cash surrender value relative to the policy in place was $ 650,237 603,816 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s carrying amounts of financial instruments as defined by Financial Accounting Standards Board (“FASB”) ASC 825, “Disclosures about Fair Value of Financial Instruments”, including premium finance contracts and related receivables, prepaid expenses, drafts payable, accrued expenses and other current liabilities, approximate their fair value due to the relatively short period to maturity for these instruments. The fair value of the line of credit and notes payable are based on current rates at which the Company could borrow funds with similar remaining maturities and the carrying value approximates fair value. |
Income Taxes | Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. Uncertain tax positions are recognized only when the Company believes it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company has no material unrecognized tax benefits and no adjustments to its consolidated financial position, results of operations or cash flows were required as of December 31, 2023 and 2022. The Company filed consolidated tax returns for the years ended December 31, 2023 and 2022, which are subject to examination by federal and state tax jurisdictions. The Company’s tax returns for the previous three years remain open for audit by the respective tax jurisdictions. No income tax returns are currently under examination by taxing authorities. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. The Company did no |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with FASB ASC Topic No. 718, “Stock Compensation,” which establishes the requirements for expensing equity awards. The Company measures and recognizes as compensation expense the fair value of all share-based payment awards based on estimated grant date fair values. Our stock-based compensation includes issuances made to directors, executives, employees and consultants, which includes employee stock options related to our 2019 Equity Incentive Plan and stock warrants. The determination of fair value involves a number of significant estimates. We use the Black-Scholes option pricing model to estimate the value of employee stock options and stock warrants which requires a number of assumptions to determine the model inputs. These include the expected volatility of our stock and employee exercise behavior which are based expectations of future developments over the term of the option. |
Earnings per Common Share | Earnings per Common Share The Company accounts for earnings (loss) per share in accordance with FASB ASC Topic No. 260 - 10 , “Earnings Per Share”, For each of the years ended December 31, 2023 and 2022, stock options to purchase 207,400 1,035,000 93,700 93,700 10,000 10,000 Schedule of effects of the outstanding options and warrants on earnings per share December 31, 2023 December 31, 2022 Options included in the calculation of diluted EPS 197,400 187,400 Nonvested options 10,000 20,000 Total options outstanding 207,400 207,400 Warrants included in the calculation of diluted EPS 635,000 635,000 Vested but antidilutive warrants 400,000 400,000 Total warrants outstanding 1,035,000 1,035,000 |
Leases | Leases The Company recognizes and measures its leases in accordance with ASC Topic 842, “Leases” |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) - Accounting for Convertible Instruments and Contracts on an Entity’s Own Equity. The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exceptions. The ASU also simplifies the diluted net income per share calculation in certain areas. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and early adoption is permitted. The Company did not experience any impact on the consolidated financial statements from the adoption of the standard. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments," which replaces the existing "incurred loss" model for recognizing credit losses with an "expected loss" model referred to as the CECL model. Under the CECL model, the Company is required to present certain financial assets carried at amortized cost, such as insurance premium finance loans held for investment, at the net amount expected to be collected. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company adopted this standard in the first fiscal quarter of 2023. There has been no impact on current earnings due to the adoption of this standard. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of reconciliation between uninsured balances and cash per the consolidated balance sheet | Schedule of reconciliation between uninsured balances and cash per the consolidated balance sheet December 31, 2023 December 31, 2022 Uninsured Balance $ 250,200 $ 482,479 Plus: Insured balances 250,000 250,000 Plus: Balances at other institutions that do not exceed FDIC limit 45,239 17,758 Plus: Cash overdraft 168,543 — Less: Outstanding checks (668,743 ) (329,026 ) Cash per Consolidated Balance Sheet $ 45,239 $ 421,211 |
Schedule of effects of the outstanding options and warrants on earnings per share | Schedule of effects of the outstanding options and warrants on earnings per share December 31, 2023 December 31, 2022 Options included in the calculation of diluted EPS 197,400 187,400 Nonvested options 10,000 20,000 Total options outstanding 207,400 207,400 Warrants included in the calculation of diluted EPS 635,000 635,000 Vested but antidilutive warrants 400,000 400,000 Total warrants outstanding 1,035,000 1,035,000 |
Premium Finance Contracts, Re_2
Premium Finance Contracts, Related Receivable and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Premium Finance Contracts Related Receivable And Allowance For Credit Losses | |
Schedule of premium finance contract and agents’ receivable | Schedule of premium finance contract and agents’ receivable Description December 31, 2023 December 31, 2022 Insurance premium finance contracts outstanding $ 57,769,501 $ 45,520,349 Insurance premium finance contracts cancelled 5,832,574 6,005,601 Insurance premium finance contracts gross 63,602,075 51,525,950 Amounts due from agents 804,131 645,648 Less: Unearned interest (2,164,914 ) (1,567,197 ) Insurance premium finance contracts net 62,241,292 50,604,401 Less: Allowance for credit losses (1,501,593 ) (1,129,498 ) Total $ 60,739,699 $ 49,474,903 |
Schedule of allowance for credit losses | Schedule of allowance for credit losses December 31, 2023 December 31, 2022 Allowance for premium finance contracts $ 1,336,157 $ 1,000,000 Allowance for amounts due from agents 165,436 129,498 Total allowance for credit losses $ 1,501,593 $ 1,129,498 |
Schedule of allowance for credit losses | Schedule of allowance for credit losses December 31, 2023 December 31, 2022 Balance at the beginning of the year $ 1,129,498 $ 1,193,757 Current year provision 1,669,000 1,347,475 Direct write-downs charged against the allowance (1,639,416 ) (1,513,814 ) Recoveries of amounts previously charged off 342,511 102,080 Balance at end of the year $ 1,501,593 $ 1,129,498 |
Schedule of provision for credit losses | Schedule of provision for credit losses December 31, 2023 December 31, 2022 Current additions to the allowance $ 1,669,000 $ 1,347,475 Less: Contra-revenues (718,185 ) (613,435 ) Provision for credit losses $ 950,815 $ 734,040 |
Schedule of aging analyses of past-due contract receivables | Schedule of aging analyses of past-due contract receivables As of December 31, 2023 30–59 Days 60–89 Days 90-119 Days Greater Than 120 Days Total Past-Due Current Grand Total Premium finance contracts: Outstanding $ 147,915 $ 2,241 $ 7,536 $ 30,086 $ 187,778 $ 57,581,723 $ 57,769,501 Cancelled 1,041,232 976,535 456,897 1,913,339 4,388,003 1,444,571 5,832,574 Total $ 1,189,147 $ 978,776 $ 464,433 $ 1,943,425 $ 4,575,781 $ 59,026,294 $ 63,602,075 As of December 31, 2022 30–59 Days 60–89 Days 90-119 Days Greater Than 120 Days Total Past-Due Current Grand Total Premium finance contracts: Outstanding $ 175,972 $ 61,678 $ 22,360 $ 11,270 $ 271,280 $ 45,249,069 $ 45,520,349 Cancelled 1,363,841 850,939 340,619 720,429 3,275,828 2,729,773 6,005,601 Total $ 1,539,813 $ 912,617 $ 362,979 $ 731,699 $ 3,547,108 $ 47,978,842 $ 51,525,950 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Schedule of property and equipment December 31, 2023 December 31, 2022 Computer Software $ 26,207 $ 26,207 Automobile 155,881 128,614 Furniture & Fixtures 14,273 14,273 Leasehold Improvements 116,811 116,811 Computer Equipment 73,145 62,494 Property and equipment, gross 386,317 348,399 Accumulated depreciation (263,817 ) (244,808 ) Property and equipment, net $ 122,500 $ 103,591 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of maturities of lease liabilities | Schedule of maturities of lease liabilities 2024 $ 68,308 2025 45,918 2026 13,879 Total lease payments 128,105 Less: imputed interest (6,706 ) Present value of lease liabilities $ 121,399 |
Schedule of leases | Schedule of leases Leases Classification December 31, 2023 December 31, 2022 Right-of-use assets Operating lease assets $ 80,840 $ 196,407 Server lease Finance lease assets 38,664 51,920 Total lease assets $ 119,504 $ 248,327 Current operating lease liability Current operating lease liabilities $ 50,594 $ 122,554 Non-current operating lease liability Long-term operating lease liabilities 30,246 73,853 Total operating lease liabilities $ 80,840 $ 196,407 Current finance lease liability Current finance lease liabilities $ 13,166 $ 12,494 Non-current finance lease liability Long-term finance lease liabilities 27,393 40,559 Total finance lease liabilities $ 40,559 $ 53,053 |
PPP Loan (Tables)
PPP Loan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Ppp Loan | |
Schedule of balance of the PPP loan | Schedule of balance of the PPP loan 2023 2022 Total PPP loan $ 123,924 $ 215,776 Less current maturities (92,785 ) (91,852 ) Long-term maturities $ 31,139 $ 123,924 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term unsecured notes to unrelated parties | Schedule of long-term unsecured notes to unrelated parties December 31, 2023 December 31, 2022 Total notes payable - Others $ 6,865,557 $ 7,286,921 Less current maturities (2,181,400 ) (1,340,597 ) Long-term maturities $ 4,684,157 $ 5,946,324 |
Schedule of future maturities of notes payable | Schedule of future maturities of notes payable Maturities due within: 1 year $ 2,181,400 $ 1,340,597 2 years 2,993,500 1,857,400 3 years 1,393,157 2,586,267 4 years 197,500 1,440,157 5 years and beyond 100,000 62,500 Total maturities $ 6,865,557 $ 7,286,921 |
Notes Payable _ Stockholders _2
Notes Payable – Stockholders and Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Payable Stockholders And Related Parties | |
Schedule of long-term notes payable to stockholders and related parties | Schedule of long-term notes payable to stockholders and related parties December 31, 2023 December 31, 2022 Total notes payable - Related parties $ 2,088,000 $ 1,925,000 Less current maturities (310,000 ) (109,000 ) Long-term maturities $ 1,778,000 $ 1,816,000 |
Schedule of future maturities of notes payable | Schedule of future maturities of notes payable Maturities due within: 1 year $ 310,000 $ 109,000 2 years 316,000 775,000 3 years 885,000 166,000 4 years 72,000 875,000 5 years 505,000 — Total maturities $ 2,088,000 $ 1,925,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | Schedule of provision for income taxes For the Year Ended December 31, 2023 2022 Statutory rate applied to income before income taxes $ 193,962 $ 256,841 Increase in income taxes results from: Temporary differences (1,971 ) (57,772 ) Non-deductible expenses (11,500 ) 7,121 Change in valuation allowance — — Income tax expense $ 180,491 $ 206,190 |
Schedule of Effective Income Tax Rate Reconciliation | Schedule of Effective Income Tax Rate Reconciliation 2023 2022 Income tax benefit at US statutory rate of 21% 21.00 % 21.00 % Income tax benefit - state 3.80 % 4.37 % Non-deductible expense -1.61 % 0.70 % Change in temporary differences -0.28 % -5.71 % Change in valuation allowance 0.00 % 0.00 % Income tax expense 22.91 % 20.36 % |
Schedule of Deferred Tax Assets and Liabilities | Schedule of Deferred Tax Assets and Liabilities 2023 2022 Deferred tax assets: Allowance for uncollectible $ 337,080 $ 253,715 Stock compensation 28,336 11,257 Book to tax depreciation 25,584 23,192 Gross deferred tax assets 391,000 288,164 Valuation allowance — — Net deferred tax assets $ 391,000 $ 288,164 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of employee stock options | Schedule of employee stock options Outstanding Options Vested Options Exercise Price Number Outstanding at December 31, 2023 Weighted Average Remaining Life Weighted Average Exercise Price Number Exercisable at December 31, 2023 Weighted Average Remaining Life Weighted Average Exercise Price $ 0.80 187,400 6.17 $ 0.80 187,400 6.17 $ 0.80 $ 4.50 10,000 8.50 $ 4.50 5,000 8.50 4.50 $ 4.95 10,000 3.50 $ 4.95 5,000 3.50 4.95 Outstanding options 207,400 6.15 $ 1.18 197,400 6.15 $ 1.00 |
Schedule of stock options outstanding | Schedule of stock options outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Intrinsic Value Outstanding at December 31, 2021 187,400 $ 0.80 8.2 years — Issued 20,000 $ 4.73 7.5 years — Exercised — — — — Outstanding at December 31, 2022 207,400 $ 1.18 7.15 years $ 1,091,236 Issued — — — — Exercised — — — — Outstanding at December 31, 2023 207,400 $ 1.18 6.15 years $ 705,224 Exercisable at December 31, 2023 197,400 $ 1.00 6.16 years $ 704,924 |
Schedule of stock warrants | Schedule of stock warrants Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Intrinsic Value Outstanding at December 31, 2021 975,000 $ 7.28 3.5 years — Issued 60,000 $ 4.00 — — Exercised — — — — Outstanding at December 31, 2022 1,035,000 $ 7.09 2.6 years $ 1,549,400 Issued — — — — Exercised — — — — Outstanding at December 31, 2023 1,035,000 $ 7.09 1.6 years $ 355,600 Exercisable at December 31, 2023 1,035,000 $ 7.09 1.6 years $ 355,600 |
Equity Option [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of stock options valuation assumptions | Schedule of stock options valuation assumptions Assumptions $4.50 Strike $4.95 Strike (1) dividend yield of 0 % 0 % (2) expected volatility of 50 % 50 % (3) risk-free interest rate of 3.10 % 3.10 % (4) expected life of 10 years 5 years (5) estimated fair value $ 4.50 $ 4.50 |
Warrant [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of stock options valuation assumptions | Schedule of stock options valuation assumptions Assumptions Grant Date (1) dividend yield of 0 % (2) expected volatility of 50 % (3) risk-free interest rate of 2.94 % (4) expected life of 5 years (5) estimated fair value $ 1.17 |
Principles of Consolidation a_2
Principles of Consolidation and Description of Business (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of shares issued, value | $ 28,200 | $ 19,878 |
Standard Premium Finance Holdings [Member] | ||
Number of shares issued | 100,000 | |
Number of shares issued, value | $ 100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Uninsured Balance | $ 250,200 | $ 482,479 |
Plus: Insured balances | 250,000 | 250,000 |
Plus: Balances at other institutions that do not exceed FDIC limit | 45,239 | 17,758 |
Plus: Cash overdraft | 168,543 | 0 |
Less: Outstanding checks | (668,743) | (329,026) |
Cash per Consolidated Balance Sheet | $ 45,239 | $ 421,211 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Options Included In The Calculation Of Filuted E P S [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 197,400 | 187,400 |
Non Vested Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 10,000 | 20,000 |
Options Held [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 207,400 | 207,400 |
Warrants Included In The Calculation Of Dluted E P S [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 635,000 | 635,000 |
Vested But Antidilutive Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 400,000 | 400,000 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 1,035,000 | 1,035,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | ||||||
Jun. 29, 2024 | Jun. 29, 2023 | Mar. 01, 2022 | Mar. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||||
Cash equivalents | $ 0 | $ 0 | |||||
Cash overdraft | 168,543 | 0 | |||||
Unearned premium | $ 87,618,261 | $ 71,315,354 | |||||
Interest rate | 17% | 15.30% | |||||
FDIC insured amount | $ 250,000 | ||||||
Uninsured balances | 250,200 | $ 482,479 | |||||
Cash surrender life insurance | 650,237 | 603,816 | |||||
Accrued interest or penalties | $ 0 | $ 0 | |||||
Number of share outstanding | 207,400 | 207,400 | 187,400 | ||||
Warrants outstanding | 1,035,000 | 1,035,000 | 975,000 | ||||
Option vested | 10,000 | 10,000 | 93,700 | 93,700 | |||
FLORIDA | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk percentage | 61% | 59% | |||||
GEORGIA | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk percentage | 10% | 12% | |||||
NORTH CAROLINA | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk percentage | 10% | 12% | |||||
SOUTH CAROLINA | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Concentration risk percentage | 10% | 9% | |||||
Leasehold Improvements [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and Equipment estimated useful lives | 10 years | ||||||
Minimum [Member] | Furniture and Fixtures [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and Equipment estimated useful lives | 5 years | ||||||
Minimum [Member] | Computer Equipment [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and Equipment estimated useful lives | 3 years | ||||||
Maximum [Member] | Furniture and Fixtures [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and Equipment estimated useful lives | 7 years | ||||||
Maximum [Member] | Computer Equipment [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property and Equipment estimated useful lives | 5 years |
Premium Finance Contracts, Re_3
Premium Finance Contracts, Related Receivable and Allowance for Credit Losses (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Premium Finance Contracts Related Receivable And Allowance For Credit Losses | ||
Insurance premium finance contracts outstanding | $ 57,769,501 | $ 45,520,349 |
Insurance premium finance contracts cancelled | 5,832,574 | 6,005,601 |
Insurance premium finance contracts gross | 63,602,075 | 51,525,950 |
Amounts due from agents | 804,131 | 645,648 |
Less: Unearned interest | (2,164,914) | (1,567,197) |
Insurance premium finance contracts net | 62,241,292 | 50,604,401 |
Less: Allowance for credit losses | (1,501,593) | (1,129,498) |
Total | $ 60,739,699 | $ 49,474,903 |
Premium Finance Contracts, Re_4
Premium Finance Contracts, Related Receivable and Allowance for Credit Losses (Details 1) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Premium Finance Contracts Related Receivable And Allowance For Credit Losses | |||
Allowance for premium finance contracts | $ 1,336,157 | $ 1,000,000 | |
Allowance for amounts due from agents | 165,436 | 129,498 | |
Total allowance for credit losses | $ 1,501,593 | $ 1,129,498 | $ 1,193,757 |
Premium Finance Contracts, Re_5
Premium Finance Contracts, Related Receivable and Allowance for Credit Losses (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Premium Finance Contracts Related Receivable And Allowance For Credit Losses | ||
Balance, at the beginning of the year | $ 1,129,498 | $ 1,193,757 |
Current year provision | 1,669,000 | 1,347,475 |
Direct write-downs charged against the allowance | (1,639,416) | (1,513,814) |
Recoveries of amounts previously charged off | 342,511 | 102,080 |
Balance at end of the year | $ 1,501,593 | $ 1,129,498 |
Premium Finance Contracts, Re_6
Premium Finance Contracts, Related Receivable and Allowance for Credit Losses (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Premium Finance Contracts Related Receivable And Allowance For Credit Losses | ||
Current additions to the allowance | $ 1,669,000 | $ 1,347,475 |
Less: Contra-revenues | (718,185) | (613,435) |
Provision for credit losses | $ 950,815 | $ 734,040 |
Premium Finance Contracts, Re_7
Premium Finance Contracts, Related Receivable and Allowance for Credit Losses (Details 4) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Premium finance contracts outstanding | $ 57,769,501 | $ 45,520,349 |
Premium finance contracts cancelled | 5,832,574 | 6,005,601 |
Premium finance contracts gross | 63,602,075 | 51,525,950 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Premium finance contracts outstanding | 147,915 | 175,972 |
Premium finance contracts cancelled | 1,041,232 | 1,363,841 |
Premium finance contracts gross | 1,189,147 | 1,539,813 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Premium finance contracts outstanding | 2,241 | 61,678 |
Premium finance contracts cancelled | 976,535 | 850,939 |
Premium finance contracts gross | 978,776 | 912,617 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Premium finance contracts outstanding | 7,536 | 22,360 |
Premium finance contracts cancelled | 456,897 | 340,619 |
Premium finance contracts gross | 464,433 | 362,979 |
Financing Receivables Equal To Greater Than 120 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Premium finance contracts outstanding | 30,086 | 11,270 |
Premium finance contracts cancelled | 1,913,339 | 720,429 |
Premium finance contracts gross | 1,943,425 | 731,699 |
Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Premium finance contracts outstanding | 187,778 | 271,280 |
Premium finance contracts cancelled | 4,388,003 | 3,275,828 |
Premium finance contracts gross | 4,575,781 | 3,547,108 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Premium finance contracts outstanding | 57,581,723 | 45,249,069 |
Premium finance contracts cancelled | 1,444,571 | 2,729,773 |
Premium finance contracts gross | $ 59,026,294 | $ 47,978,842 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 386,317 | $ 348,399 |
Accumulated depreciation | (263,817) | (244,808) |
Property and equipment, net | 122,500 | 103,591 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 26,207 | 26,207 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 155,881 | 128,614 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,273 | 14,273 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 116,811 | 116,811 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 73,145 | $ 62,494 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 25,292 | $ 22,283 |
Leases (Details)
Leases (Details) | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 68,308 |
2025 | 45,918 |
2026 | 13,879 |
Total lease payments | 128,105 |
Less: imputed interest | (6,706) |
Present value of lease liabilities | $ 121,399 |
Leases (Details 1)
Leases (Details 1) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Right-of-use assets | $ 80,840 | $ 196,407 |
Server lease | 38,664 | 51,920 |
Total lease assets | 119,504 | 248,327 |
Current operating lease liability | 50,594 | 122,554 |
Non-current operating lease liability | 30,246 | 73,853 |
Total operating lease liabilities | 80,840 | 196,407 |
Current finance lease liability | 13,166 | 12,494 |
Non-current finance lease liability | 27,393 | 40,559 |
Total finance lease liabilities | $ 40,559 | $ 53,053 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 12 Months Ended | |||||||
Sep. 30, 2022 | Sep. 26, 2022 | Dec. 07, 2021 | Mar. 01, 2021 | Oct. 14, 2019 | Sep. 11, 2017 | Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||||||||
Borrowing rate | 5.25% | 5.25% | ||||||
Operating lease payments | $ 27,490 | $ 97,978 | ||||||
Right to use of asset | 80,840 | 196,407 | ||||||
Lease liability | $ 80,840 | $ 196,407 | ||||||
Weighted-average remaining lease term | 1 year 11 months 19 days | 2 years 4 months 24 days | ||||||
Total lease cost | $ 123,127 | $ 114,086 | ||||||
Office Lease [Member] | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease term | 2 years | |||||||
Operating lease payments | $ 7,048 | |||||||
Secure Facility Lease [Member] | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease term | 3 years | 5 years | ||||||
Operating lease payments | $ 1,418 | $ 1,233 | ||||||
Borrowing rate | 4% | |||||||
Right to use of asset | 48,979 | |||||||
Lease liability | 48,979 | |||||||
Copier Lease [Member] | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Operating lease payments | $ 1,116 | |||||||
Borrowing rate | 5.25% | |||||||
Right to use of asset | 68,799 | |||||||
Lease liability | $ 68,799 | |||||||
Hardware Lease [Member] | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Operating lease payments | $ 664 | |||||||
Right to use of asset | 22,059 | |||||||
Lease liability | $ 22,059 | |||||||
Server Lease [Member] | ||||||||
Lessee, Lease, Description [Line Items] | ||||||||
Lease term | 5 years | |||||||
Operating lease payments | $ 1,249 | |||||||
Borrowing rate | 5.25% | |||||||
Right to use of asset | $ 66,281 | |||||||
Lease liability | $ 65,801 |
Drafts Payable (Details Narrati
Drafts Payable (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Drafts Payable | ||
Drafts payable | $ 2,681,359 | $ 1,827,884 |
Line of Credit (Details Narrati
Line of Credit (Details Narrative) - First Horizon Bank [Member] - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 03, 2021 | Oct. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Loan Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revolving line of credit | $ 35,000,000 | |||
Payments of loan costs | 180,350 | |||
Line of credit costs | $ 25,771 | $ 117,228 | ||
Advance rate | 85% | 85% | ||
Interest rate description | The line of credit bears interest at 30-Day SOFR plus 2.55-2.96% per annum (8.09% and 6.87% at December 31, 2023 and 2022, respectively). The terms of the Line of Credit agreement provide for a minimum interest of 3.35% when the 30-day SOFR falls below 0.50%. | |||
Long term line of credit | $ 42,377,736 | $ 32,821,347 | ||
Unamortized loan origination fees | 3,021 | 107,722 | ||
Interest expense | 3,023,000 | 1,554,000 | ||
Amortized loan origination fee | 104,701 | 70,198 | ||
Line of credit facility paid | 17,272 | $ 29,956 | ||
Line of credit facility, maximum borrowing capacity | $ 2,662,264 | |||
Loan Agreement [Member] | Minimum [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revolving line of credit | 35,000,000 | |||
Loan Agreement [Member] | Maximum [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revolving line of credit | $ 45,000,000 | |||
Initial Funding [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Revolving line of credit | $ 25,974,695 |
PPP Loan (Details)
PPP Loan (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Ppp Loan | ||
Total PPP loan | $ 123,924 | $ 215,776 |
Less current maturities | (92,785) | (91,852) |
Long-term maturities | $ 31,139 | $ 123,924 |
PPP Loan (Details Narrative)
PPP Loan (Details Narrative) - Small Business Administration [Member] - USD ($) | Apr. 18, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 22, 2022 | May 18, 2022 |
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 271,000 | ||||
Debt Instrument, Term | 2 years | ||||
Interest rate | 1% | 1% | |||
Interest payable | $ 1,761 | $ 7,185 | $ 7,801 |
Notes Payable (Details)
Notes Payable (Details) - Notes Payable, Other Payables [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total notes payable - Others | $ 6,865,557 | $ 7,286,921 |
Less current maturities | (2,181,400) | (1,340,597) |
Long-term maturities | $ 4,684,157 | $ 5,946,324 |
Notes Payable (Details 1)
Notes Payable (Details 1) - Notes Payable, Other Payables [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
1 year | $ 2,181,400 | $ 1,340,597 |
2 years | 2,993,500 | 1,857,400 |
3 years | 1,393,157 | 2,586,267 |
4 years | 197,500 | 1,440,157 |
5 years and beyond | 100,000 | 62,500 |
Total maturities | $ 6,865,557 | $ 7,286,921 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 | Jan. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Interest rate | 8% | |||
Notes payable | $ 1,243,021 | $ 2,441,523 | ||
Interest expense | 496,000 | 507,000 | ||
Proceeds from notes payable | 350,212 | 575,511 | ||
Repayments of notes payable | $ 771,576 | $ 288,400 | ||
Series A Convertible Preferred Stock [Member] | ||||
Debt Instrument [Line Items] | ||||
Stock exchanged during period, value | $ 250,000 | $ 20,000 | ||
Stock exchanged during period, shares | 25,000 | 2,000 | ||
Conversion price | $ 10 | $ 10 | ||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 8% |
Notes Payable - Stockholders an
Notes Payable - Stockholders and Related Parties (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Less current maturities | $ (2,181,400) | $ (1,340,597) |
Long-term maturities | 4,684,157 | 5,946,324 |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable - Related parties | 2,088,000 | 1,925,000 |
Less current maturities | (310,000) | (109,000) |
Long-term maturities | $ 1,778,000 | $ 1,816,000 |
Notes Payable - Stockholders _2
Notes Payable - Stockholders and Related Parties (Details 1) - Notes Payable [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
1 year | $ 310,000 | $ 109,000 |
2 years | 316,000 | 775,000 |
3 years | 885,000 | 166,000 |
4 years | 72,000 | 875,000 |
5 years | 505,000 | 0 |
Total maturities | $ 2,088,000 | $ 1,925,000 |
Notes Payable _ Stockholders _3
Notes Payable – Stockholders and Related Parties (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 | Jan. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Interest rate | 8% | |||
Notes payable | $ 587,000 | $ 862,000 | ||
Interest expense | 154,000 | 156,000 | ||
Proceeds from notes payable | 190,000 | 35,000 | ||
Repayments of other notes payable | $ 27,000 | $ 181,302 | ||
Series A Convertible Preferred Stock [Member] | ||||
Stock exchanged during period, value | $ 250,000 | $ 20,000 | ||
Stock exchanged during period, shares | 25,000 | 2,000 | ||
Conversion price | $ 10 | $ 10 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Statutory rate applied to income before income taxes | $ 193,962 | $ 256,841 |
Increase in income taxes results from: | ||
Temporary differences | (1,971) | (57,772) |
Non-deductible expenses | (11,500) | 7,121 |
Change in valuation allowance | 0 | 0 |
Income tax expense | $ 180,491 | $ 206,190 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit at US statutory rate | 21% | 21% |
Income tax benefit - state | 3.80% | 4.37% |
Non-deductible expense | (1.61%) | 0.70% |
Change in temporary differences | (0.28%) | (5.71%) |
Change in valuation allowance | 0% | 0% |
Income tax expense | 22.91% | 20.36% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for uncollectible | $ 337,080 | $ 253,715 |
Stock compensation | 28,336 | 11,257 |
Book to tax depreciation | 25,584 | 23,192 |
Gross deferred tax assets | 391,000 | 288,164 |
Valuation allowance | 0 | 0 |
Net deferred tax assets | $ 391,000 | $ 288,164 |
Equity (Details)
Equity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Number of shares outstanding | 207,400 | 207,400 | 187,400 |
Weighted average contractual life | 6 years 1 month 24 days | ||
Weighted average exercise price | $ 1.18 | $ 1.18 | $ 0.80 |
Exercisable number of shares | 197,400 | ||
Weighted average contractual life | 6 years 1 month 24 days | ||
Exercisable weighted average exercise price | $ 1 | ||
Exercise Price 0.80 [Member] | |||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Number of shares outstanding | 187,400 | ||
Weighted average contractual life | 6 years 2 months 1 day | ||
Weighted average exercise price | $ 0.80 | ||
Exercisable number of shares | 187,400 | ||
Weighted average contractual life | 6 years 2 months 1 day | ||
Exercisable weighted average exercise price | $ 0.80 | ||
Exercise Price 4.50 [Member] | |||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Number of shares outstanding | 10,000 | ||
Weighted average contractual life | 8 years 6 months | ||
Weighted average exercise price | $ 4.50 | ||
Exercisable number of shares | 5,000 | ||
Weighted average contractual life | 8 years 6 months | ||
Exercisable weighted average exercise price | $ 4.50 | ||
Exercise Price 4.95 [Member] | |||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Number of shares outstanding | 10,000 | ||
Weighted average contractual life | 3 years 6 months | ||
Weighted average exercise price | $ 4.95 | ||
Exercisable number of shares | 5,000 | ||
Weighted average contractual life | 3 years 6 months | ||
Exercisable weighted average exercise price | $ 4.95 |
Equity (Details 1)
Equity (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Number of share outstanding, Beginning | 207,400 | 187,400 | |
Weighted average exercise price outstanding, Beginning | $ 1.18 | $ 0.80 | |
Weighted average remaining contractual term, Exercisable | 6 years 1 month 24 days | 7 years 1 month 24 days | 8 years 2 months 12 days |
Intrinsic value, Beginning | $ 1,091,236 | $ 0 | |
Number of shares, Issued | 0 | 20,000 | |
Weighted average exercise price outstanding issued | $ 0 | $ 4.73 | |
Weighted average remaining contractual term, issued | 7 years 6 months | ||
Number of shares, Exercised | 0 | 0 | |
Weighted average exercise price outstanding, Exercised | $ 0 | $ 0 | |
Number of share outstanding, Ending | 207,400 | 207,400 | 187,400 |
Weighted average exercise price outstanding, Ending | $ 1.18 | $ 1.18 | $ 0.80 |
Intrinsic value, Ending | $ 705,224 | $ 1,091,236 | $ 0 |
Number of shares, Exercisable | 197,400 | ||
Weighted average exercise price outstanding, Exercisable | $ 1 | ||
Weighted average remaining contractual term | 6 years 1 month 28 days | ||
Intrinsic value, Exercisable | $ 704,924 |
Equity (Details 2)
Equity (Details 2) - Equity Option [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Strike 4. 50 [Member] | |
Offsetting Assets [Line Items] | |
Dividend yield | 0% |
Expected volatility | 50% |
Risk-free interest rate | 3.10% |
Expected life | 10 years |
Estimated fair value | $ 4.50 |
Strike 4. 95 [Member] | |
Offsetting Assets [Line Items] | |
Dividend yield | 0% |
Expected volatility | 50% |
Risk-free interest rate | 3.10% |
Expected life | 5 years |
Estimated fair value | $ 4.50 |
Equity (Details 3)
Equity (Details 3) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Warrants balance at beginning | 1,035,000 | 975,000 | |
Weighted average exercise price, Beginning | $ 7.09 | $ 7.28 | |
Weighted average remaining contractual term | 1 year 7 months 6 days | 2 years 7 months 6 days | 3 years 6 months |
Intrinsic value, beginning | $ 1,549,400 | $ 0 | |
Warrants issued | 0 | 60,000 | |
Weighted average exercise price issued | $ 0 | $ 4 | |
Warrants exercised | 0 | 0 | |
Weighted average exercise price, exercised | $ 0 | $ 0 | |
Warrants balance at ending | 1,035,000 | 1,035,000 | 975,000 |
Weighted average exercise price, ending | $ 7.09 | $ 7.09 | $ 7.28 |
Intrinsic value, ending | $ 355,600 | $ 1,549,400 | $ 0 |
Warrant, exercisable | 1,035,000 | ||
Weighted average exercise price, Exercisable | $ 7.09 | ||
Weighted average remaining contractual term, exercisable | 1 year 7 months 6 days | ||
Intrinsic value, exercisable | $ 355,600 |
Equity (Details 4)
Equity (Details 4) - Warrant [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
dividend yield of | 0% |
expected volatility of | 50% |
risk-free interest rate of | 2.94% |
expected life of | 5 years |
estimated fair value | $ 1.17 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Jun. 29, 2022 | Jun. 01, 2022 | Apr. 30, 2022 | Jun. 11, 2021 | Apr. 01, 2020 | Jan. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||||||||
Preferred stock shares authorized | 20,000,000 | 20,000,000 | ||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||||||
Designated shares | 600,000 | |||||||
Preferred stock liquidation preference per share | $ 10 | |||||||
Liquidation preference preferred stock | $ 1,689,050 | |||||||
Dividends | 116,200 | $ 89,191 | ||||||
Dividends payable | $ 29,050 | $ 29,050 | ||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||
Common stock, shares issued | 2,905,016 | 2,905,016 | ||||||
Common stock, shares outstanding | 2,905,016 | 2,905,016 | ||||||
Number of shares issued, value | $ 28,200 | $ 19,878 | ||||||
Warrant issued for services | $ 10,800 | $ 9,275 | $ 27,200 | |||||
Stock warrant expense | $ 0 | $ 10,800 | ||||||
Class W 4 A Warrant [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Warrants Issued | 60,000 | |||||||
Warrant issued price | $ 0.001 | |||||||
Strike price | $ 4 | |||||||
Warrants and rights outstanding, term | 5 years | |||||||
Series A Convertible Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued | 166,000 | 166,000 | ||||||
Preferred stock, shares outstanding | 166,000 | 166,000 | ||||||
Exchanged notes payable | $ 250,000 | $ 20,000 | ||||||
Stock exchanged during period, shares | 2,000 | |||||||
Notes payable at a price | $ 10 | $ 10 | ||||||
Cconvertion of shares | 65,000 | |||||||
Cconvertion of value | $ 400,000 |
Employee Benefit Plan (Details
Employee Benefit Plan (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Benefits to employees | $ 30,688 | $ 50,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |||||
Jun. 29, 2022 | Mar. 01, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2021 | Feb. 03, 2021 | |
Related Party Transaction [Line Items] | ||||||
Notes and Loans Payable, Current | $ 2,088,000 | $ 1,925,000 | ||||
Equity Option [Member] | Equity Incentive Plan 2019 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options issued | 187,400 | |||||
Equity Option [Member] | Equity Incentive Plan 2019 [Member] | Officers And Directors [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options issued | 20,000 | |||||
Impact on future earnings description | The impact on earnings from this transaction was a total of $69,338, amortizing over 24 months at a rate of $2,889 per month | |||||
Impact on future earnings description | The impact on future earnings from this transaction is a total of $56,400, which is being amortized over 24 months at a rate of $2,350 per month | |||||
Equity Option [Member] | 2019 Equity Incentive Plan [Member] | Officers And Directors [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options issued | 167,400 | |||||
First Horizon Bank [Member] | Loan Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Long term line of credit | $ 35,000,000 | |||||
First Horizon Bank [Member] | Loan Agreement [Member] | Minimum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Long term line of credit | $ 35,000,000 | |||||
Line of credit increased | 35,000,000 | |||||
First Horizon Bank [Member] | Loan Agreement [Member] | Maximum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Long term line of credit | 45,000,000 | |||||
Line of credit increased | $ 45,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Jun. 29, 2022 shares |
Equity Option [Member] | C E O And C F O [Member] | Equity Incentive Plan 2019 [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock option issued | 20,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2024 | Jan. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||
Other notes payable | $ 123,924 | $ 215,776 | ||
Notes payable | 1,243,021 | 2,441,523 | ||
Dividends | $ 116,200 | $ 89,191 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Other notes payable | $ 42,000 | |||
Repayment of notes payable | $ 17,000 | 15,000 | ||
Notes payable | $ 260,000 | 30,000 | ||
Dividends | $ 29,050 |