On October 25, 2024, the Audit Committee of NI Holdings, Inc. determined that the company's unaudited financial statements in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and related communications, should no longer be relied upon. This decision was made upon the recommendation of company management.
The non-reliance stems from prior period accounting errors related to the sale of Westminster American Insurance Company. Specifically, the company failed to record approximately $3.4 million of receivables on Westminster's closing balance sheet and a corresponding payable for Nodak Insurance Company.
This error resulted in an approximate $3.4 million understatement of the loss on sale of discontinued operations, which also understated the company's total net loss by the same amount. This translated to an understatement of $0.17 and $0.16 per basic and diluted share for the three- and six-month periods ended June 30, 2024, respectively. The company plans to correct these errors by filing an amended Quarterly Report on Form 10-Q as soon as practicable.
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