Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes From Continuing Operations

For the year ended December 31, 2025, the provision for income taxes is comprised of the following:

Federal income tax before utilization of net operating loss	$	10,896,837
Utilization of net operating loss	(419,357)
Current federal income tax expense	10,477,480
Current state income tax expense (1)	2,590
Deferred federal and state income tax (benefit) (2)	(201,548)
Income tax	$	10,278,522

For the year ended December 31, 2024, the provision for income taxes is comprised of the following:

Current federal income tax expense	$	-
Current state income tax expense (1)	2,160
Deferred federal and state income tax (2)	4,927,561
Income tax	$	4,929,721

(1) For the year ended December 31, 2025, state income tax consisted of New York state minimum tax of $2,340 and Connecticut minimum tax of $250. For the year ended December 31, 2024, state income tax consists of New York state minimum tax of $2,160.

(2) For the years ended December 31, 2025 and 2024, the Company recorded a 100% valuation allowance for state deferred taxes. See state valuation allowance discussion below.

Schedule of Reconciliation of the Federal Statutory Rate

For the year ended December 31, 2025, a reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows:

Income from operations before taxes	$	51,045,650
Federal statutory income tax rate	21		%
Taxes at federal statutory rate	$	10,719,587		21.0	%
State income taxes, net of federal effect	11,013			—
Nontaxable and nondeductible items
Dividends received deduction	(51,835)			(0.1)
Non-taxable investment income	(167,401)			(0.3)
Stock-based compensation	(563,954)			(1.1)
Other nontaxable and nondeductible items	318,977			0.6
Other	12,135			(0.1)
Effective tax rate	$	10,278,522		20.0	%

For the year ended December 31, 2024, a reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows:

Computed expected tax expense	$	4,890,513	21.0	%
State taxes, net of Federal benefit	(431,749)		(1.9)	%
State valuation allowance	439,905		1.9	%
Permanent differences
Dividends received deduction	(64,525)		(0.3)	%
Non-taxable investment income	(122,194)		(0.5)	%
Stock-based compensation	(280,104)		(1.2)	%
Sale leaseback transaction	99,775		0.4	%
Other permanent differences	191,488		0.8	%
Prior year tax matters	173,572		0.8	%
Other	33,040		0.1	%
Income tax expense, as reported	$	4,929,721	21.2	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31, 2025		December 31, 2024
Deferred tax asset:
Net operating loss carryovers (1)	$	—	$	419,357
Claims reserve discount	1,562,424		1,305,466
Unearned premium	4,948,868		3,810,973
Deferred ceding commission revenue	1,756,131		2,423,660
Net unrealized losses on securities	1,811,373		3,069,900
Other	916,350		834,921
Total deferred tax assets	10,995,146		11,864,277
Deferred tax liability:
Investment in KICO (2)	759,543		759,543
Deferred acquisition costs	5,852,113		5,193,798
Intangibles	105,000		105,000
Depreciation and amortization	98,931		208,016
Total deferred tax liabilities	6,815,587		6,266,357
Net deferred income tax asset	$	4,179,559	$	5,597,920

Schedule of Net Operating Loss Carryovers

The deferred tax assets from net operating loss carryovers are as follows:

Type of NOL	December 31, 2025		December 31, 2024		Expiration
Federal only, NOL from 2024 and 2023	$	-	$	419,357	None
State only (A)	3,421,252		3,075,395		December 2027 - December 2043
Valuation allowance	(3,421,252)		(3,075,395)
State only, net of valuation allowance	-		-
Total deferred tax asset from net operating loss carryovers	$	-	$	419,357

Schedule Of Changes In Net Deferred Income Tax Liability To Deferred Income Tax Benefit

The table below reconciles the changes in net deferred income tax assets (liabilities) to the deferred income tax benefit for the year ended December 31, 2025:

Decrease in net deferred income tax assets	$	1,418,361
Less: Deferred tax expense allocated to other comprehensive income	1,619,909
Deferred income tax benefit	$	(201,548)