Significant Accounting Policies (Policies)

3 Months Ended

12 Months Ended

Mar. 31, 2017

Dec. 31, 2016

Assumption Risk, Policy [Policy Text Block]

- Assumptions Risk:

In the life insurance business, assumptions as to expected mortality, lapse rates and other factors in developing the pricing and other terms of life insurance products are made. These assumptions are based on industry experience and a

re reviewed and revised regularly by an outside actuary to reflect actual experience on a current basis. However, variation of actual experience from that assumed in developing such terms

may

affect a product's profitability or sales volume and in turn adversely impact our revenues.

Reclassification, Policy [Policy Text Block]

Reclassifications

: Certain reclassifications of a minor nature have been made to prior-year balances to conform to current-year presentation with

net impact to net loss/income or equity.

New Accounting Pronouncements, Policy [Policy Text Block]

New accounting standards

Revenue from Contracts with Customers

May 2014,

the Financial Accounting Standards Board (“FASB”) issued updated guidance to clarify the principles for recognizing revenue. While insurance contracts are

not

within the scope of this updated guidance, the Company's fee income related to providing services will be subject to this updated guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services.

The following steps are applied in the updated guidance: (

)

identify the contract(s) with a customer; (

) identify the performance obligations in the contract; (

) determine the transaction price; (

) allocate the transaction price to the performance obligations in the contract and (

) recognize revenue when, or as, the entity satisfies a performance obligation.

July

2015,

the FASB deferred the effective date of the updated guidance on revenue recognition by

one

year to the quarter ending

March

31,

2018.

The adoption of this guidance is

not

expected to have a material effect on the Company’s results of operations, financial position or liquidity.

Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern

August 2014,

the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity's ability to continue as a going concern and when an entity must disclose certain relevant conditions and events. The new guidance requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within

one

year after the date that the financial statements are issued (or available to be issued). The new guidance allows the entity to consider the mitigating effects of management's plans that will alleviate the substantial doubt and requires certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans.

If conditions or events raise substantial doubt that is

not

alleviated, an entity should disclose that there is substantial doubt about the entity's ability to continue as a going concern within

one

year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations and management's plans that are intended to mitigate those conditions.

The guidance is effective for annual periods ending after

December

15,

2016,

and interim and annual periods thereafter. The adoption of this guidance did

not

have a material effect on the Company's results of operations, financial position or liquidity.

Recognition and Measurement of Financial Assets and Financial Liabilities

January 2016,

the FASB issued updated guidance regarding financial instruments. This guidance intends to enhance reporting for financial instruments and addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The significant amendments in this update generally require equity investments to be measured at fair value with changes in fair value recognized in net income, require the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. This guidance also intends to enhance the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments.

This guidance is effective for fiscal years beginning after

December 15, 2017.

The recognition and measurement provisions of this guidance will be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and early adoption is

not

permitted. The Company is evaluating this guidance but expects the primary impact will be the recognition of unrealized gains and losses on available-for-sale equity securities in net income. Currently, all unrealized gains and losses on available-for-sale equity securities are recognized in other comprehensive income (loss).

The effect of the adoption of this guidance on the Company

’s results of operations, financial position and liquidity is primarily dependent on the fair value of the available-for-sale equity securities in future periods and the existence of a deferred tax asset related to available-for-sale securities in future periods that have

not

yet been fully assessed.

Leases

February

2016,

the FASB issued updated guidance to require lessees to recognize a right-to-use asset and a lease liability for leases with terms of more than

months. The updated guidance retains the

two

classifications of a lease as either an operating or finance lease (previously referred to as a capital lease). Both lease classifications require the lessee to record the right-to-use asset and the lease liability based upon the present value of cash flows. Finance leases will reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-to-use asset. Operating leases will recognize lease expense (with

separate recognition of interest expense) on a straight-line basis over the term of the lease. The accounting by lessors is

not

significantly changed by the updated guidance. The updated guidance requires expanded qualitative and quantitative disclosures, including additional information about the amounts recorded in the financial statements.

The updated guidance is effective for reporting periods beginning after

December

15,

2018,

and will require that the earliest comparative period presented include the measurement and recognition of existing leases with an adjustment to equity as if the updated guidance had always been applied. Early adoption is permitted. The adoption of this guidance is

not

expected to have a material effect on the Company’s results of operations, financial position or liquidity.

Contingent Put and Call Options in Debt Instruments

March

2016,

the FASB issued updated guidance clarifying that when a call (put) option in a debt instrument can accelerate the repayment of principal on the debt instrument, a reporting entity does

not

need to assess whether the contingent event that triggers the ability to exercise the call (put) option is related to interest rates or credit risk in determining whether the option should be accounted for separately. The updated guidance is effective for reporting periods beginning after

December

15,

2016.

Early adoption is permitted. The adoption of this guidance did

not

have a material effect on the Company’s results of operations, financial position or liquidity.

Measurement of Credit Losses on Financial Instruments

June

2016,

the FASB issued updated guidance for the accounting for credit losses for financial instruments. The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (e.g. reinsurance recoverables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, will be recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected.

The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security

’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will

longer impact the determination of whether a credit loss exists.

The updated guidance is effective for reporting periods beginning after

December

15,

2019.

Early adoption is permitted for reporting periods beginning after

December

15,

2018.

The Company will

not

be able to determine the impact that the updated guidance will have on its results of operations, financial position or liquidity until the updated guidance is adopted.

Classification of Certain Cash Receipts and Cash Payment

August 2016,

the FASB issued new guidance that clarifies the classification of certain cash receipts and cash payments in the statement of cash flows under

eight

different scenarios including, but

not

limited to: (i) debt prepayment or debt extinguishment costs; (ii) proceeds from the settlement of corporate-owned life insurance policies including bank-owned life insurance policies; (iii) distributions received from equity method investees; and (iv) separately identifiable cash flows and application of the predominance principle. This guidance is effective for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its statement of cash flows.

All other new accounting standards and updates of existing standards issued through the date of this filing were considered by management and did

not

relate to accounting policies and procedures pertinent or material to the Company at this time.

New accounting standards

Revenue from Contracts with Customers

May 2014,

the Financial Accounting Standards Board (“

FASB”) issued updated guidance to clarify the principles for recognizing revenue. While insurance contracts are

not

The following steps are applied in the updated guidance: (

)

identify the contract(s) with a customer; (

) identify the performance obligations in the contract; (

) determine the transaction price; (

) allocate the transaction price to the performance obligations in the contract and (

) recognize revenue when, or as, the entity satisfies a performance obligation.

July

2015,

the FASB deferred the effective date of the updated guidance on revenue recognition by

one

year to the quarter ending

March

31,

2018.

The adoption of this guidance is

not

expected to have a material effect on the Company’s result of operations, financial position or liquidity.

Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern

August 2014,

the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity's ability

to continue as a going concern and when an entity must disclose certain relevant conditions and events. The new guidance requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's

ability to continue as a going concern within

one

year after the date that the financial statements are issued (or available to be issued). The new guidance allows the entity to consider the mitigating effects of management's plans that will

alleviate the substantial doubt and requires certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans.

If conditions or events raise substantial doubt that is

not

alleviated, an entity should disclose th

at there is substantial doubt about the entity's ability to continue as a going concern within

one

The guidance is effective for annual per

iods ending after

December

15,

2016,

and interim and annual periods thereafter. The adoption of this guidance is

not

expected to have a material effect on the Company's results of operations, financial position or liquidity.

Recognition and Measurement of Financial Assets and Financial Liabilities

January 2016,

the FASB issued updated guidance regarding financial instruments. This guidance intends

to enhance reporting for financial instruments and addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The significant amendments in this update generally require equity investments to be measured at fair value with changes in fair value recognized in net income, require the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. This guidance also intends to enhance the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments.

This guidance is effective for fiscal years beginning after

December 15, 2017.

The recognition and measurement provisions of this guidance will be applied by means of a cumulative-effect adjustment

to the balance sheet as of the beginning of the fiscal year of adoption and early adoption is

not

The effect of the adoption of this guidance on the Company

not

yet been fully assessed.

Leases

February

2016,

the FASB issued updated guidance to require lessees to recognize a right-to-use asset and a lease liability for leases with terms of more than

months. The updated guidance retains the

two

separate recognition of interest expense) on a straight-line basis over the term of the lease. The accounting by lessors is

not

significantly changed by the updated guidance. The updated guidance requires expanded qualitative and

quantitative disclosures, including addi

tional information about the amounts recorded in the financial statements.

The updated guidance is effective for reporting periods beginning after

December

15,

2018,

not

expected to have a material effect on the Company’s results of operations, financial position or liquidity.

Contingent Put and Call Options in Debt Instruments

March

2016,

the FASB issued updated guidance clarifying that when a call (put) option in a debt instrument can accelerate the repayment of principal on the debt instrument, a reporting entity does

not

December

15,

2016.

Early adoption is permitted.

The adoption of this guidance is

not

expected to have a material effect on the Company’s results of operations, financial position or liquidity.

Measurement of Credit Losses on Financial Instruments

June

2016,

The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition o

f impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will

longer impact the determination of whether a credit loss exists.

The updated guidance is effective for reporting periods beginning after

December

15,

2019.

Early adoption is permitted for reporting periods beginning after

December

15,

2018.

The Company will

not

be able to determine the impact that the updated guidance will have on its results of operations, financial position or liquidity until the updated guidance is adopted.

Classification of Certain Cash Receipts and Cash Paym

ent

August 2016,

the FASB issued new guidance that clarifies the classification of certain cash receipts and cash payments in the statement of cash flows under

eight

different scenarios including, but

not

limited to: (i) debt prepayment or debt extin

guishment costs; (ii) proceeds from the settlement of corporate-owned life insurance policies including bank-owned life insurance policies; (iii) distributions received from equity method investees; and (iv) separately identifiable cash flows and application of the predominance principle. This guidance is effective for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its statement of cash flows.

All other new accounting standards and updates of existing standards issued through the date of this filing were considered by management and did

not

relate to accounting policies and procedures pertinent or material to the

Company at this time.

Basis of Accounting, Policy [Policy Text Block]

Basis of presentation

: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with the instructions to Form

-Q and Article

of Regulation S-

Accordingly, they do

not

include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation of the results for the interim periods have been included.

The results of operation for the

three months ended

March 31, 2017

are

not

necessarily indicative of the results to be expected for the year ended

December 31, 2017

or for any other interim period or for any other future year. Certain financial information which is normally included in notes to financial statements prepared in accordance with US GAAP, but which is

not

required for interim reporting purposes, has been condensed or omitted. The accompanying financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in the Company’s report on Form

-K and amendments thereto for the year ended

December 31, 2016.

Basis of presentation

: The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted (“GAAP”) in the United States of America.

Consolidation, Policy [Policy Text Block]

Principles of consolidation

: The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated from the consolidated financial statements.

Principles of consolidation

Area of Operation, Policy [Policy Text Block]

Area of Operation

: US Alliance Life and Security Company is authorized to operate in the states of Kansas, North Dakota, Oklahoma, and Missouri.

Area of Operation:

US Alliance Life and Security Company is authorized to operate in the states of Kansas, North Dakota and Missouri and has a pending expansion application on file with the State of Oklahoma.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equiv

alents

: For purposes of the statement of cash flows, the Company considers demand deposits and highly liquid investments with original maturities of

three

months or less when purchased to be cash and cash equivalents. The Company maintains its cash balances in

one

financial institution located in Topeka, Kansas. The FDIC insures aggregate balances, including interest-bearing and noninterest-bearing accounts, of

$250,000

per depositor per insured institution. The Company’s financial institution is a member of a network that participates in the Insured Cash Sweep (ICS) program. By participating in ICS, the Company’s deposits in excess of the insured limit are apportioned and placed in demand deposit accounts at other financial institutions in amounts under the insured limit. As a result, the Company can access insurance coverage from multiple financial institutions while working directly with

one

. The Company had

amounts uninsured as of

December

31,

2016.

The Company has

not

experienced any losses in such accounts and believes it is

not

exposed to any significant credit risk on cash and cash equivalents.

Property, Plant and Equipment, Policy [Policy Text Block]

Property, equipment and software

: Property, equipment and software are stated at cost less accumulated depreciation. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to income currently. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in income.

Depreciation is computed by

the straight-line method over the estimated useful lives of the assets. Computer equipment is depreciated over

longer than a

-year period. Furniture and equipment are depreciated over

longer than a

-year period. Software is depreciated over

longer than a

-year

period. Major categories of depreciable assets and the respective book values as of

December 31, 2016

and

2015

are represented below.

	Year ended			Year ended
	December 31,			December 31,
	2016			2015
Computer	$	20,755		$	20,755
Furniture and equipment		80,956			80,956
Software		257,500			257,500
Accumulated depreciation		(114,362	)		(75,629	)
Balance at end of period	$	244,849		$	283,582

Deferred Charges, Policy [Policy Text Block]

Pre-paid expenses:

The Company recognizes pre-paid expenses as the expenses are incurred. Pre-paid expenses consist of a multi-year computer service contract and systems consulting hours. Service contract expenses are charged straight line over the life of the contract. Systems consulting hours are charged as they are incurred on projects.

Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block]

Investments

: Investments in available-for-sale securities are carried in the consolidated financial statements at fair value with the net unrealized holding gains (losses) included in accumulated other comprehensive income. Bond premiums and discounts are amortized using the scientific-yield method over the term of the bonds.

Realized gains and losses on securities sold during the year a

re determined using the specific identification method and included in investment income. Investment income is recognized as earned.

Management has a policy and process in place to identify securities that could potentially have an impairment that is oth

er-than-temporary. The assessment of whether impairments have occurred is based on a case-by-case evaluation of underlying reasons for the decline in fair value. We consider severity of impairment, duration of impairment, forecasted recovery period, industry outlook, financial condition of the issuer, issuer credit ratings and whether we intend to sell a security or it is more likely than

not

that we would be required to sell a security prior to the recovery of the amortized cost.

The recognition of other

-than-temporary impairment losses on debt securities is dependent on the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than

not

that we would be required to sell a security prior to recovery of the amortized cost, the difference between amortized cost and fair value is recognized in the income statement as an other-than-temporary impairment. As it relates to debt securities, if we do

not

expect to recover the amortized basis, do

not

plan to sell the security and if it is

not

more likely than

not

that we would be required to sell a security before the recovery of its amortized cost, the other-than-temporary impairment would be recognized. We would recognize the credit loss portion through earnings in the income statement and the noncredit loss portion in accumulated other comprehensive loss. As of

December 31, 2016

and

2015,

the Company had

investment securities that were evaluated to be other than temporarily impaired.

Reinsurance Accounting Policy [Policy Text Block]

Reinsurance

: In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on risks by purchasing reinsurance. The amounts reported in the consolidated balance sheets as reinsurance recoverable include amounts billed to reinsurers on losses paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities that have

not

yet been paid. Reinsurance recoverable on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Insurance liabilities are reported gross of reinsurance recoverable. Management believes the recoverables are appropriately established. Reinsurance premiums are generally reflected in income in a manner consistent with the recognition of premiums on the reinsured contracts. Reinsurance does

not

extinguish

the Company

’s primary liability under the policies written. Therefore, the Company regularly evaluates the financial condition of its reinsurers including their activities with respect to claim settlement practices

and commutations, and establishes allowances for uncollectible reinsurance recoverable as appropriate. There were

allowances as of

December 31, 2016

and

2015.

Future Policy Benefits Liability, Policy [Policy Text Block]

Benefit reserves

: The Company establishes liabilities for amounts payable under insurance policies, including traditional life insurance and annuities. Generally, amounts are payable over an extended period of time. Liabilities for future policy benefits of traditional life insurance have been computed by a net level premium method based upon estimates at the time of issue for investment yields, mortality and withdrawals. These estimates include provisions for experience less favorable than initially expected. Mortality assumptions are based on industry experience expressed as a percentage of standard mortality tables.

Unpaid Policy Claims and Claims Adjustment Expense, Policy [Policy Text Block]

Policy claims

: Policy claims are based on reported claims plus estimated incurred but

not

reported claims developed from trends of historical data applied to current exposure. The Company’s current estimate of incurred but

not

reported claims is

$37,391

and is included as a part of policyholder benefit reserves.

Deposit Contracts, Policy [Policy Text Block]

Deposit-type contracts

: Deposit-type contracts consist of amounts on deposit associated with deferred annuity contracts. The deferred annuity contracts credit interest based upon a fixed interest rate set by the Company. The Company has the ability to change this rate annually subject to minimums established by law or administrative regulation.

Liabilities for these deposit-type contracts are included without reduction for potential surrender charges. This liability is equal to the accumulated account d

eposits, plus interest credited, and less policyholder withdrawals. The following table provides information about deposit-type contracts for the years ended

December 31, 2016

and

2015.

	Year ended			Year ended
	December 31,			December 31,
	2016			2015

Balance at beginning of period	$	1,573,988		$	686,316
Deposits received		1,989,833			910,817
Interest credited		80,452			31,478
Withdrawals		(246,103	)		(54,623	)
Balance at end of period	$	3,398,170		$	1,573,988

Insurance Premiums Revenue Recognition, Policy [Policy Text Block]

Revenue recognition and related expenses

: Revenues on traditional life insurance products consist of direct premiums reported as earned when due. Premium income includes reinsurance assumed and is reduced by premiums ceded.

Amounts received as payment for annuity contracts without life conting

encies are recognized as deposits to policyholder account balances and included in future insurance policy benefits. Revenues from these contracts are comprised of fees earned for contract-holder services, which are recognized over the period

of the contr

acts, and included in revenue. Deposits are shown as a financing activity in the Consolidated Statements of Cash Flows.

Liabilities for future policy benefits are provided and acquisition costs are amortized by associating benefits and expenses with earn

ed premiums to recognize related profits over the life of the contracts.

Deferred Policy Acquisition Costs, Policy [Policy Text Block]

Deferred acquisition costs

: The Company capitalizes and amortizes over the life of the premiums produced incremental direct costs that result directly from and are essential to the contract acquisition transaction and would

not

have been incurred by the Company had the contract acquisition

not

occurred.

An entity

may

defer incremental

direct costs of contract acquisition that are incurred in transactions with independent

third

parties or employees as well as the portion of employee compensation and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts. Additionally, an entity

may

capitalize as a deferred acquisition cost only those advertising costs meeting the capitalization criteria for direct-response advertising. Acquisition costs are amortized over the premium paying period using the net level premium method. Traditional life insurance products are treated as long duration contracts, which generally remain in force for the lifetime of the insured.

The following table provides info

rmation about deferred acquisition costs for the years ended

December 31, 2016

and

2015,

respectively.

	Year ended			Year ended
	December 31,			December 31,
	2016			2015

Balance at beginning of period	$	86,053		$	52,808
Capitalization of commissions, sales and issue expenses		221,410			146,539
Amortization net of interest		(153,671	)		(113,294	)
Balance at end of period	$	153,792		$	86,053

Comprehensive Income, Policy [Policy Text Block]

Comprehensive loss

: Comprehensive loss is comprised of net loss and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses from marketable securities classified as available for sale, net of applicable taxes.

Earnings Per Share, Policy [Policy Text Block]

Common stock and earnings (loss) per share:

The par value for common stock is

$0.10

per share with

9,000,000

shares authorized. As of

March 31, 2017

and

December 31, 2016,

the Company had

5,583,702

and

5,565,943

common shares issued and outstanding, respectively.

Earnings (loss) per share attributable to the Company

’s common stockholders were computed based on the net loss and the weighted average number of shares outstanding during each year. The weighted average number of shares outstanding during the

three months ended

March 31, 2017

and

2016

were

5,571,529

and

5,295,510

shares, respectively. Potential common shares are excluded from the computation when their effect is anti-dilutive. Basic and diluted net loss per common share is the same for the quarters ended

March 31, 2017

and

2016

because all warrants for common shares are anti-dilutive.

Common stock and earnings (loss) per share:

The par value for common stock is

$0.10

per share with

9,000,000

shares authorized. As of

December 31, 2016

and

2015

the company had

5,565,943

and

5,177,245

common shares issued and outstanding, respectively.

Earnings (loss) per share attributable to the Company

’s common stockholders were computed based on the net loss and the weighted average number of shares outstanding during each year. The weighted average number of shares outstanding during the years ended

December 31, 2016

and

2015

were

5,421,972

and

4,431,740

shares, respectively. Potential common shares are excluded from the computation when their effect is anti-dilutive. Basic and diluted net loss per common share is the same for the years ended

December 31, 2016

and

2015

because all warrants for common shares are anti-dilutive.

As of

December 31, 2015

the Company had a stock subscription receivable of

$827,

952.

This represents the value of share purchases agreed to but which settled after

December 31, 2015.

There was

such balance as of

December 31, 2016.

Income Tax, Policy [Policy Text Block]

Income taxes

: The Company is subject to U.S. federal and state taxes. The provision for income taxes is based on income as reported in the consolidated financial statements. The income tax provision is calculated using the asset and liability method. Deferred income taxes are recorded based on the differences between the financial statement and tax basis of assets and liabilities at the enacted rates expected to apply to taxable income in the years in which the differences are expected to reverse. A valuation allowance is established for the amount of any deferred tax asset that exceeds the amount of the estimated future taxable income needed to utilize the future tax benefits.

All of the Company

’s tax returns are subject to U.S. federal, state and local income tax examinations by tax authorities. The Company had

known uncertain tax benefits included in its provision for income taxes as of

December 31, 2016

and

2015.

The Company’s policy is to recognize interest and penalties (if applicable) as an element of the provision for income taxes in the consolidated statements of income.

The tax years which remain subject to examination by taxing authorities are the years ended

December 31, 2013

through

2016.

Use of Estimates, Policy [Policy Text Block]

-Use of Estimates: The preparation of consolidated financial statements in conformity with US GAAP, generally accepted accounting principles in the United States, requires mana

gement 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Regulatory Factors, Policy [Policy Text Block]

- Regulatory Factors: The insurance laws of Kansas give the KID broad regulatory authority, including powers to (i) grant and revoke licenses to transact business; (ii) regulat

e and supervise trade practices and market conduct, (iii) establish guaranty associations; (iv) license agents; (v) approve policy forms; (vi) approve premium rates for some lines of business; (vii) establish reserve requirements; (viii) prescribe the form and content of required financial statements and reports; (ix) determine the reasonableness and adequacy of statutory capital and surplus; and (

) regulate the type and amount of permitted investments.

The Dodd-Frank Wall Street Reform and Consumer Prot

ection Act (the "Reform Act") reshapes financial regulations in the United States by creating new regulators, regulating new markets and firms, and providing new enforcement powers to regulators. Virtually all major areas of the Reform Act continue to be subject to regulatory interpretation and implementation rules requiring rulemaking that

may

take several years to complete. The ultimate outcome of the regulatory rulemaking proceedings cannot be predicted with certainty. The regulations promulgated could have a material impact on consolidated financial results or financial condition.

Reinsurance Contract Risk, Policy [Policy Text Block]

- Reinsurance:

In order to manage the risk of financial exposure to adverse underwriting results, USALSC reinsures a portion of its risk with other insurance companies. USALSC retains

$35,000

on its Pioneer Whole Life Series and

$25,000

on its Solid Solutions Term Life Series* and Sound Solutions Term Life Series®. USALSC also reinsures

100%

of the risk on its accidental death benefit rider. USALSC retains

25%

of the risk for each covered life on its group life product to a maximum of

$100,000

on any individual person. USALSC retains

25%

of the risk for each covered life on its group accidental death and dismemberment product to a maximum of

$25,000

on any individual person. USALSC also has catastrophic reinsurance coverage to protect against

three

or more group life deaths resulting from a single event. USALSC also reinsures

100%

of the risk on its group disability products. USALSC reinsurers

66%

of the risk on its critical illness product. Optimum Re Insurance Company (a subsidiary of Optimum Group), General Reinsurance Corporation (a subsidiary of Berkshire Hathaway), Reliance Standard Life Insurance Company (a subsidiary of Tokio Marine Holdings), and Unified Life Insurance Company provide reinsurance for USALSC. The Company evaluates the financial condition of its reinsurers to minimize its exposure to losses from reinsurer insolvencies. Management believes that any liabilities arising from this contingency would

not

be material to the Company’s financial position.

Interest Rate Risk, Policy [Policy Text Block]

- Interest Rate Risk:

Interest rate fluctuations could impair an insurance company's ability to pay policyholder

benefits with operating and investment cash flows, cash on hand and other cash sources. Annuity products expose the risk that changes in interest rates will reduce any spread, or the difference between the amounts that the insurance company is required to pay under the contracts and the amounts the insurance subsidiary is able to earn on its investments intended to support its obligations under the contracts. Spread is a key component of revenues.

To the extent that interest rates credited are less than those generally available in the marketplace, policyholder lapses, policy loans and surrenders, and withdrawals of life insurance policies and annuity contracts

may

increase as contract holders seek to purchase products with perceived higher returns. This process

may

result in cash outflows requiring that an insurance subsidiary sell investments as a time when the prices of those investments are adversely affected by the increase in market interest rates, which

may

result in realized investment losses.

Increases in market interest rates

may

also negatively affect profitability in periods of increasing interest rates. The ability to replace invested assets with higher yielding assets needed to fund the higher crediting rates that

may

be necessary

to keep interest sensitive products competitive.

If interest rates

were to increase by

across our entire portfolio, the market value of our fixed income securities would decrease by

6.6%

as of

December 31, 2016.

USALSC therefore

may

have to accept a lower spread and thus lower profitability or face a decline in sales and greater loss of existing contracts.

Conversely, in a period of prolonged low interest rates it is difficult to invest assets and earn the rate of return necessary to support insurance products. Some central b

anks currently have negative interest rates which contributes to the current low interest rate environment.

Investment Risk, Policy [Policy Text Block]

- Investment Risk:

Our invested assets are subject to customary risks of defaults and changes in market values. Factors that

may

affect the overall default rate on, and market value of, the invested assets include in

terest rate levels, financial market performance, and general economic conditions.