Segment Reporting

6 Months Ended

Jun. 30, 2018

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 92% and 93% of consolidated revenues for the three and six months ended June 30, 2018, respectively, compared to 93% and 92% of consolidated revenues for the three and six ended June 30, 2017, respectively. The Company’s remaining operations constitute a variety of specialty insurance services, each with unique characteristics and individually insignificant to consolidated revenues.

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

	Three Months Ended June 30						Six Months Ended June 30
	2018			2017			2018			2017
Revenues
Insurance company operation	$	7,927,789		$	8,551,554		$	16,109,807		$	16,752,651
Other insurance operations		2,906,772			3,575,396			5,949,544			6,964,851
Intersegment eliminations (1)		(2,191,109	)		(2,885,644	)		(4,609,010	)		(5,515,699	)
Total other insurance operations		715,663			689,752			1,340,534			1,449,152
Total revenues	$	8,643,452		$	9,241,306		$	17,450,341		$	18,201,803
Income (Loss) Before Taxes
Insurance company operation	$	892,285		$	(346,898	)	$	(1,060,329	)	$	(3,410,818	)
Other insurance operations		(605,253	)		(1,003,928	)		(1,464,571	)		(1,207,357	)
Total income (loss) before taxes	$	287,032		$	(1,350,826	)	$	(2,524,900	)	$	(4,618,175	)

	As of
	June 30			December 31
	2018			2017
Assets
Insurance company operation	$	114,015,943		$	117,274,626
Intersegment eliminations (2)		(2,583,114	)		(2,486,500	)
Total insurance company operation		111,432,829			114,788,126
Other insurance operations		14,066,662			15,510,632
Total assets	$	125,499,491		$	130,298,758

(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.