NI Holdings, Inc. Leases Disclosure
| 15. | Leases |
Primero leases a facility in Spearfish, South Dakota under a non-cancellable operating lease expiring in 2028. Direct Auto leases a facility in Chicago, Illinois under a non-cancellable 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 expiring in 2026.
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 our Consolidated Balance Sheets.
There were expenses of $458, $484, and $407 related to these leases during the years ended December 31, 2025, 2024, and 2023, respectively.
Additional information regarding the Company’s leases are as follows:
| As of and For the Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Operating lease cost | $ | 366 | $ | 383 | $ | 389 | ||||||
| Finance lease cost: | ||||||||||||
| Amortization of right-of-use assets | 80 | 80 | 14 | |||||||||
| Interest on lease liabilities | 12 | 21 | 4 | |||||||||
| Finance lease cost | 92 | 101 | 18 | |||||||||
| Total lease cost | $ | 458 | $ | 484 | $ | 407 | ||||||
| Other information on leases: | ||||||||||||
| Cash payments included in operating cash flows from operating leases | $ | 392 | $ | 406 | $ | 408 | ||||||
| Cash payments included in operating cash flows from finance leases | 12 | 21 | 4 | |||||||||
| Cash payments included in financing cash flows from finance leases | 108 | 99 | 16 | |||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | 185 | 247 | ||||||||||
| Right-of-use assets obtained in exchange for new finance lease liabilities | 319 | |||||||||||
| Weighted average discount rate – operating leases | 4.43% | 4.48% | 3.94% | |||||||||
| Weighted average discount rate – finance leases | 8.50% | 8.50% | 8.50% | |||||||||
| Weighted average remaining lease term in years – operating leases | 3.5 years | 4.5 years | 5.3 years | |||||||||
| Weighted average remaining lease term in years – finance leases | 0.8 years | 1.8 years | 2.8 years | |||||||||
The following table presents the contractual maturities of the Company’s lease liabilities for each of the five years in the period ending December 31, 2029, and thereafter, reconciled to our lease liability at December 31, 2025:
| Year ending December 31, | Operating Leases | Finance Leases | Total | |||||||||
| 2026 | 397 | 100 | 497 | |||||||||
| 2027 | 401 | 401 | ||||||||||
| 2028 | 376 | 376 | ||||||||||
| 2029 | 212 | 212 | ||||||||||
| Thereafter | ||||||||||||
| Total undiscounted lease payments | 1,386 | 100 | 1,486 | |||||||||
| Less: present value adjustment | 96 | 3 | 99 | |||||||||
| Lease liability at December 31, 2025 | $ | 1,290 | $ | 97 | $ | 1,387 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 8, 2023 | |
| 2021 | Mar 9, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 11, 2020 | |
| 2018 | Mar 13, 2019 | |
| 2017 | Mar 7, 2018 | |
| 2016 | Apr 7, 2017 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.