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Fair Value Measurements

9 Months Ended

Sep. 30, 2023

Fair Value Measurements

Fair Value Measurements

Note 4 - Fair Value Measurements

The following table presents information about the Company’s investments that are measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022 indicating the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

		September 30, 2023
		Level 1				Level 2				Level 3				Total

Fixed-maturity securities available-for-sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	8,167,845			$	-			$	-			$	8,167,845

Political subdivisions of States, Territories and Possessions			-				12,414,354				-				12,414,354

Corporate and other bonds industrial and miscellaneous			69,465,238				-				-				69,465,238

Residential mortgage and other asset backed securities			-				42,739,462				-				42,739,462
Total fixed maturities			77,633,083				55,153,816				-				132,786,899
Equity securities			13,907,651				-				-				13,907,651
Total investments		$	91,540,734			$	55,153,816			$	-			$	146,694,550

		December 31, 2022
		Level 1				Level 2				Level 3				Total

Fixed-maturity securities available-for-sale
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	23,869,096			$	-			$	-			$	23,869,096

Political subdivisions of States, Territories and Possessions			-				13,141,387				-				13,141,387

Corporate and other bonds industrial and miscellaneous			71,585,115				497,370				-				72,082,485

Residential mortgage and other asset backed securities			-				45,622,195				-				45,622,195
Total fixed maturities			95,454,211				59,260,952				-				154,715,163
Equity securities			13,834,390				-				-				13,834,390
Total investments		$	109,288,601			$	59,260,952			$	-			$	168,549,553

The following table sets forth the Company’s investment in a hedge fund measured at Net Asset Value (“NAV”) per share as of September 30, 2023 and December 31, 2022. The Company measures this investment at fair value on a recurring basis. Fair value using NAV per share is as follows as of the dates indicated:

Category		September 30, 2023				December 31, 2022

Other Investments
Hedge fund		$	3,213,318			$	2,771,652

The hedge fund investment is generally redeemable with at least 45 days prior written notice. The hedge fund investment is accounted for as a limited partnership by the Company. Income is earned based upon the Company’s allocated share of the partnership's changes in unrealized gains and losses to its partners. Such amounts have been recorded in the condensed consolidated statements of operations and comprehensive loss within net (losses) gains on investments.

The estimated fair value and the level of the fair value hierarchy of the Company’s long-term debt as of September 30, 2023 and December 31, 2022 not measured at fair value is as follows:

		September 30, 2023
		Level 1				Level 2				Level 3				Total
Debt

Senior Notes due 2024		$	-			$	17,314,915			$	-			$	17,314,915


		December 31, 2022
		Level 1				Level 2				Level 3				Total
Debt

Senior Notes due 2024		$	-			$	15,829,096			$	-			$	15,829,096

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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