Segment Reporting

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Segment Reporting

NOTE 7 – SEGMENT REPORTING

Accounting Standards Codification (“ASC”) Topic 280, “Segment Reporting,” establishes standards for the way information about operating segments is reported in financial statements. The Company has identified its insurance company operation as its primary reporting segment. Revenues from this segment comprised 92% of total revenues for each of the three and nine months ended September 30, 2017, and the three and nine months ended September 30, 2016. The Company’s remaining operations constitute a variety of specialty insurance services, each with unique characteristics and individually insignificant to total revenues.

Revenues, loss before income taxes, and assets by segment are as follows:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2017			2016			2017			2016
Revenues
Insurance company operation	$	8,586,199		$	8,281,572		$	25,338,850		$	24,130,282
Other insurance operations		3,346,184			3,367,469			10,311,036			10,108,721
Intersegment eliminations (1)		(2,638,994	)		(2,650,699	)		(8,154,694	)		(7,988,351	)
Total other insurance operations		707,190			716,770			2,156,342			2,120,370
Total revenues	$	9,293,389		$	8,998,342		$	27,495,192		$	26,250,652
Loss Before Income Taxes
Insurance company operation	$	(3,917,854	)	$	(2,414,571	)	$	(7,328,672	)	$	(1,856,083	)
Other insurance operations		(517,371	)		(552,151	)		(1,724,725	)		(1,172,071	)
Total loss before income taxes	$	(4,435,225	)	$	(2,966,722	)	$	(9,053,397	)	$	(3,028,154	)

	September 30			December 31
	2017			2016
Assets
Insurance company operation	$	127,140,004		$	124,325,620
Intersegment eliminations (2)		(4,514,427	)		(1,579,820	)
Total insurance company operation		122,625,577			122,745,800
Other insurance operations		15,452,919			15,476,405
Total assets	$	138,078,496		$	138,222,205

(1) Intersegment revenue eliminations reflect rents paid by Unico to Crusader for space leased in the Calabasas building and commissions paid by Crusader to Unifax Insurance Systems, Inc. (“Unifax”), a wholly owned subsidiary of Unico.

(2) Intersegment asset eliminations reflect the elimination of Crusader receivables from Unifax and Unifax payables to Crusader.