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Leases | 6 Months Ended
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Jun. 30, 2024
Leases [Abstract] |
Leases | 14. Leases Primero leases a facility in Spearfish, South Dakota under a non-cancellable operating lease expiring in 2028, and leases a facility in Las Vegas, Nevada on a month-to-month basis. Direct Auto leases a facility in Chicago, Illinois under a non-cancellable operating lease expiring in 2029. Nodak Insurance leases a facility in Fargo, North Dakota under a non-cancellable operating lease expiring in 2029. In addition, Nodak Insurance leases server equipment under a non-cancellable finance lease expiring in 2026. Effective for the year ended December 31, 2022, the Company adopted the updated guidance for leases. See Part II, Item 8, Note 2 “Recent Accounting Pronouncements” section of the 2023 Annual Report for additional information. We determine whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and directs the use of identified property or equipment for a period of time in exchange for consideration. We generally must also have the right to obtain substantially all of the economic benefits from the use of the property and equipment. Lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates based on the floating interest rate on our Line of Credit with Wells Fargo Bank, N.A. at the lease commencement date, as rates are not implicitly stated in most leases. Lease liabilities are included in accrued expenses and other liabilities and right-of-use assets are included in other assets in the Consolidated Balance Sheets. There were expenses of $122 and $98 related to these leases during the three months ended June 30, 2024 and 2023, respectively, and $244 and $196 during the six months ended June 30, 2024 and 2023. Additional information regarding the Company’s leases are as follows:
|  | As of and For the Three Months Ended June 30, |  |  | As of and For the Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Operating lease expense |  | $ | 96 |  |  | $ | 98 |  |  | $ | 192 |  |  | $ | 196 |
Finance lease cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
Amortization of right-of-use assets |  |  | 20 |  |  |  | — |  |  |  | 40 |  |  |  | — |
Interest on lease liabilities |  |  | 6 |  |  |  | — |  |  |  | 12 |  |  |  | — |
Finance lease cost |  |  | 26 |  |  |  | — |  |  |  | 52 |  |  |  | — |
Total lease cost |  | $ | 122 |  |  | $ | 98 |  |  | $ | 244 |  |  | $ | 196 |
Other information on leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash payments included in operating cash flows from operating leases |  | $ | 102 |  |  | $ | 103 |  |  | $ | 203 |  |  | $ | 204 |
Cash payments included in operating cash flows from finance leases |  |  | 6 |  |  |  | — |  |  |  | 12 |  |  |  | — |
Cash payments included in financing cash flows from finance leases |  |  | 24 |  |  |  | — |  |  |  | 48 |  |  |  | — |
Right-of-use assets obtained in exchange for new operating lease liabilities |  |  | 185 |  |  |  | 247 |  |  |  | 185 |  |  |  | 247 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Weighted average discount rate – operating leases |  |  | 4.46% |  |  |  | 3.95% |  |  |  | 4.46% |  |  |  | 3.95% |
Weighted average discount rate – finance leases |  |  | 8.50% |  |  |  | — |  |  |  | 8.50% |  |  |  | — |
Weighted average remaining lease term in years – operating leases |  |  | 4.9 years |  |  |  | 5.8 years |  |  |  | 4.9 years |  |  |  | 5.8 years |
Weighted average remaining lease term in years – finance leases |  |  | 2.3 years |  |  |  | — |  |  |  | 2.3 years |  |  |  | — |
The following table presents the contractual maturities of the Company’s operating leases for each of the five years in the period ending December 31, 2028, and thereafter, reconciled to the Company’s operating lease liability at June 30, 2024.
Year ending December 31, |  | Operating Leases |  |  | Finance Leases |  |  | Total |
2024 (six months remaining) |  | $ | 196 |  |  | $ | 60 |  |  | $ | 256 |
2025 |  |  | 393 |  |  |  | 120 |  |  |  | 512 |
2026 |  |  | 396 |  |  |  | 100 |  |  |  | 497 |
2027 |  |  | 401 |  |  |  | — |  |  |  | 401 |
2028 |  |  | 376 |  |  |  | — |  |  |  | 376 |
Thereafter |  |  | 212 |  |  |  | — |  |  |  | 212 |
Total undiscounted lease payments |  |  | 1,974 |  |  |  | 280 |  |  |  | 2,254 |
Less: present value adjustment |  |  | 193 |  |  |  | 26 |  |  |  | 218 |
Lease liability at June 30, 2024 |  | $ | 1,781 |  |  | $ | 254 |  |  | $ | 2,036 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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