Segment Reporting

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Segment Reporting

NOTE 7 – SEGMENT REPORTING

Accounting Standards Codification 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% of consolidated revenues for the three and nine months ended September 30, 2018 and 2017. The Company’s remaining operations constitute a variety of specialty insurance services, each with unique characteristics and individually insignificant to consolidated revenues.

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

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2018			2017			2018			2017
Revenues
Insurance company operation	$	7,537,951		$	8,586,199		$	23,647,759		$	25,338,850
Other insurance operations		2,807,648			3,346,184			8,757,192			10,311,036
Intersegment eliminations (1)		(2,184,565	)		(2,638,994	)		(6,793,574	)		(8,154,694	)
Total other insurance operations		623,083			707,190			1,963,618			2,156,342
Total revenues	$	8,161,034		$	9,293,389		$	25,611,377		$	27,495,192
Loss Before Taxes
Insurance company operation	$	(282,446	)	$	(3,917,854	)	$	(1,342,775	)	$	(7,328,672	)
Other insurance operations		(529,695	)		(517,371	)		(1,994,266	)		(1,724,725	)
Total loss before taxes	$	(812,141	)	$	(4,435,225	)	$	(3,337,041	)	$	(9,053,397	)

	As of
	September 30			December 31
	2018			2017
Assets
Insurance company operation	$	112,577,045		$	117,274,626
Intersegment eliminations (2)		(2,576,592	)		(2,486,500	)
Total insurance company operation		110,000,453			114,788,126
Other insurance operations		13,591,453			15,510,632
Total assets	$	123,591,906		$	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.