Note 5 - Income Tax Provision

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 5.    Income Tax Provision

No income tax expense or (benefit) has been reflected for the three or six months ended June 30, 2023 and 2022 due to loss carryforwards and a change in the valuation allowance pertaining to the deferred tax asset. 

The net operating loss carryforwards for the Company are $9,630,952 as of December 31, 2022 and estimated to be $9,750,000 as of June 30, 2023. The components of the deferred tax assets and liabilities due to book and tax differences are the following: fixed asset depreciation, net operating loss carryforward, net unrealized gains (losses) on investment securities, policyowner benefit reserves and deferred acquisition costs. The deferred tax asset net of valuation allowance is $3,294,522 as of both June 30, 2023 and December 31, 2022.

US Alliance Corporation

Notes to Consolidated Financial Statements (unaudited)