Note 12. Investment in Great Plains Financial Corporation and First Wyoming Capital Corporation

During the first quarter of 2012, the Company purchased additional shares of Great Plains Financial Corporation (Great Plains Financial). The purchase increased our total investment in Great Plains Financial to 819,000 shares. Our aggregate ownership percentage increased to approximately 21% as a result of the purchases. As a result of the increased ownership, the Company changed its method of carrying the investment from cost to equity.

During the third quarter of 2012, the Company began providing TPA services to Great Plains Financial and Great Plains Financial's wholly owned subsidiary, Great Plains Life Assurance Company (Great Plains Life). At the end of the third quarter of 2012, Mark Oliver, our Chief Executive Officer and a member of our Board of Directors, was assigned to serve as President of the Company in addition to his role as Executive Vice President, CEO, and CFO of Great Plains Financial. During the fourth quarter of 2012, the Company purchased additional shares of Great Plains Financial, which increased our ownership to 24.5% as of December 31, 2012. As a result of the Company's ability to significantly influence the operations of Great Plains Financial, the Company began consolidating Great Plains Financial during fourth quarter of 2012. An additional purchase of shares in the first quarter of 2013 increased our ownership of Great Plains Financial to 25.7% as of December 31, 2013.

The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition:

Investments, available for sale, fixed maturities	$	519,540
Investments, available for sale, equity securities		963,486
Short-term investments		1,168,530
Cash and cash equivalents		4,087,454
Amounts recoverable from reinsurers		38,754
Interest and dividends due and accrued		11,692
Due premiums		92,315
Furniture and equipment, net		22,383
Other assets		1,417,224
Benefit reserves		(1,221,816	)
Policy claims		(38,380	)
Deposit-type contracts		(737,230	)
Other liabilities		(279,268	)
Net assets acquired		6,044,684
Change in noncontrolling interests		(4,751,930	)
Equity investment in Great Plains Financial at initial consolidation date		(1,174,142	)
Gain on initial consolidation of Great Plains Financial	$	118,612

During 2012, the Company recognized a gain of $118,612 on the consolidated statements of comprehensive income for the excess of the acquisition date fair value of its previously held equity interest over its carrying value on the acquisition date. After the recognition of this gain, the new carrying value of Great Plains was equal to the acquisition date fair value of the previously held equity interest.

The following pro forma information presents the combined results of the Company as though the consolidation of Great Plains into the Company's financial statements occurred on January 1, 2012.

	Year Ended
	December 31, 2012
Premiums	$	5,494,457
Other income		1,176,681
Expenses		(9,419,078	)
Net loss		(2,747,940	)
Less: Loss attributable to noncontrolling interests		(794,485	)
Net loss attributable to Midwest Holding Inc.		(1,953,455	)
Net loss attributable to Midwest Holding Inc. per common share	$	(0.21	)

During the second quarter of 2012, the Company obtained significant influence over First Wyoming Capital Corporation (First Wyoming) by filling First Wyoming's top executive management positions and a majority of its board of director seats with employees and directors of the Company. At this time, the Company began reporting its investment in First Wyoming under the equity method. Our total investment in First Wyoming is 896,500 shares. Our aggregate ownership percentage was approximately 22.65% as of December 31, 2013.