Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2021

Taxes on Income (Tables)

Provision For Taxes

	Year ended December 31
	2021		2020
Federal expense
Deferred		450,117		3,566,840
Total tax expense	$	450,117	$	3,566,840
State expense
Current	$	8,800	$	8,800
Deferred		-		(28,042	)
Total tax expense (benefit)	$	8,800	$	(19,242	)
Total expense
Current	$	8,800	$	8,800
Deferred		450,117		3,538,798
Total tax expense	$	458,917	$	3,547,598

Reconcilation of income tax provision reflected in the consolidated statements of operations and expected income tax

	Year ended December 31
	2021			2020
Computed income tax benefit at 21%	$	(1,095,010	)	$	(3,768,138	)
Tax effect of:
State tax expense (benefit), net of federal tax benefit		137,312			(572,511	)
Change in valuation allowance – state net operating losses		(130,360	)		557,310
Change in valuation allowance – federal		1,547,392			7,319,959
Other, including nondeductible expenses		3,620			10,920
Other – prior year true up		(4,037	)		58
Income tax expense	$	458,917		$	3,547,598

Components Of Net Deferred Tax Assets

	Year ended December 31
	2021		2020
Deferred tax assets:
Discount on loss reserves	$	605,164	$	531,845
Unearned premium		599,571		759,659
Unearned commission income		-		438,574
Unearned policy fee income		62,834		127,293
Net operating loss carryforwards		8,584,487		7,769,603
State net operating loss carryforwards		2,509,115		2,402,438
Unrealized losses on investments		-		-
Bad debt reserve		62,673		333,649
Other		474,854		237,803
Total gross deferred tax assets		12,898,698		12,600,864
Less valuation allowance		11,939,459		10,557,080
Total deferred tax assets	$	959,239	$	2,043,784
Deferred tax liabilities:
Policy acquisition costs	$	191,586	$	858,705
State tax on undistributed insurance company earnings		25,357		84,219
Federal tax liability on state deferred tax assets		63,456		91,277
Depreciation and amortization		302,073		266,880
Unrealized gains on investments		376,767		742,703
Total deferred tax liabilities	$	959,239	$	2,043,784
Net deferred tax assets	$	-	$	-