Segment Reporting

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Segment Reporting

NOTE 7 – SEGMENT REPORTING

Accounting Standards Codification (“ASC”)Topic 280, “Segment Reporting,” establishes standards for the way information about operating segments is reported in financial statements. The Company has identified its insurance company operation as its primary reporting segment. Revenues from this segment comprised 93% and 92% of total revenues for the three and six months ended June 30, 2017, respectively, compared to 92% of total revenues for the three and six months ended June 30, 2016. The Company’s remaining operations constitute a variety of specialty insurance services, each with unique characteristics and individually insignificant to total revenues.

Revenues, income (loss) before income taxes, and assets by segment are as follows:

	Three Months Ended						Six Months Ended
	June 30						June 30
	2017			2016			2017			2016
Revenues
Insurance company operation	$	8,551,554		$	7,997,979		$	16,752,651		$	15,848,710
Other insurance operations		3,575,396			3,543,106			6,964,851			6,741,252
Intersegment eliminations (1)		(2,885,644	)		(2,818,453	)		(5,515,699	)		(5,337,652	)
Total other insurance operations		689,752			724,653			1,449,152			1,403,600
Total revenues	$	9,241,306		$	8,722,632		$	18,201,803		$	17,252,310
Income (Loss) Before Income Taxes
Insurance company operation	$	(346,898	)	$	304,736		$	(3,410,818	)	$	558,489
Other insurance operations		(1,003,928	)		(96,142	)		(1,207,357	)		(619,921	)
Total income (loss) before income taxes	$	(1,350,826	)	$	208,594		$	(4,618,175	)	$	(61,432	)

	June 30			December 31
	2017			2016
Assets
Insurance company operation	$	128,728,314		$	124,325,620
Intersegment eliminations (2)		(2,669,587	)		(1,579,820	)
Total insurance company operation		126,058,727			122,745,800
Other insurance operations		14,720,070			15,476,405
Total assets	$	140,778,797		$	138,222,205

(1) Intersegment revenue eliminations reflect rents paid by Unico to Crusader for space leased in the Calabasas building and commissions paid by Crusader to Unifax Insurance Systems, Inc. (“Unifax”), a wholly owned subsidiary of Unico.

(2) Intersegment asset eliminations reflect the elimination of Crusader receivables from Unifax and Unifax payables to Crusader.