JACOBS FINANCIAL GROUP, INC.

CIK:0000857501|SEC Filings

Consolidated Condensed Statements of Operations - USD ($)	12 Months Ended
	May 31, 2017	May 31, 2016
Revenues
Investment advisory services	$ 81,918	$ 109,194
Insurance premiums and commissions	1,886,040	1,123,898
Net investment income (losses)	493,829	(215,382)
Net realized investment gains (losses)	138,220	(79,060)
Other income	160,493	316,267
Interest and dividend income	108,816	80,912
Total Revenues	2,869,316	1,335,829
Operating Expenses:
Provision for policy losses	579,359	179,335
Insurance policy acquisition costs	590,260	284,127
General and administrative	1,187,379	1,442,606
Depreciation	4,598	1,251
Total Operating Expenses	2,361,596	1,907,319
Income (Loss) from Operations	507,720	(571,490)
Gain on debt extinguishment	0	1,919,532
Settlement Expense	(350,000)	0
Accrued dividends of Series A Mandatorily Redeemable Preferred Stock	(67,847)	(65,374)
Accrued dividends and accretion of Series B Mandatorily Redeemable Preferred Stock	(522,099)	(483,596)
Interest expense	(574,971)	(915,098)
Net Loss	(1,007,197)	(116,025)
Accretion of Mandatorily Redeemable Convertible Preferred Stock, including accrued dividends	(87,688)	(84,492)
Accrued dividends on Series C Preferred Stock equity	(1,256,829)	(1,164,143)
Net loss attributable to common stockholders	(2,351,714)	(1,364,661)
Net loss Attributable to Noncontrolling Interest	(262,771)	92,131
Net Loss Attributable to JFGI Stockholders	$ (2,351,714)	$ (1,364,661)
Basic and Dilutive Net Income (Loss) Per Share:
Net Income (Loss) Per Share	$ (0.01)	$ 0
Weighted-Average Shares Outstanding	385,197,135	381,912,411

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	May 31, 2017	May 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (1,007,197)	$ (116,026)
Adjustments to reconcile net loss to net cash provided by operating activities:
(Increase) decrease in short-term investments	(1,659,849)	1,414,868
Unearned premium	455,888	(106,606)
Stock issued in connection with financing arrangements	2,108	12,987
Stock issued in connection with dividend arrangements	0	37,184
Accrual of Series A preferred stock dividends	67,847	65,374
Accrual of Series B preferred stock dividends and accretion	522,098	483,596
Provision for loss reserves	590,142	(322,256)
Amortization of premium	158,488	96,216
Depreciation	4,598	1,251
Accretion of discount	(16,620)	0
Proceeds from funds held in trust	19,858,620	0
Realized (gain) loss on sale of securities	(138,220)	79,061
Gain on extinguishment of debt	0	(1,919,532)
Change in operating assets and liabilities:
Other assets	(2,163)	(67)
Premium and other receivables	(353,515)	566,273
Investment income due and accrued	(110,809)	(11,353)
Deferred policy acquisition costs	(195,726)	(16,906)
Related party accounts payable	(400)	(47,886)
Accounts payable	(1,388)	65,844
Accrued expenses and other liabilities	1,198,302	(246,738)
Net cash flows from operating activities	19,372,204	35,284
CASH FLOWS FROM INVESTING ACTIVITIES
Costs of bonds acquired	(47,146,079)	(1,775,947)
Costs of mortgaged-backed securities acquired	(1,864,276)	0
Purchase of equity securities	(2,667,650)	(1,899,637)
Redemption of bonds upon call or maturity	17,000,000	0
Proceeds from sale of securities available for sale	6,614,202	1,910,797
Repayment of mortgage-backed securities	681,537	631,121
(Purchase)/Collection - accrued interest	(125,201)	3,980
Purchase of furniture and equipment	(40,610)	(548)
Net cash flows used in investing activities	(27,548,077)	(1,130,234)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related party debt	599,452	1,957,658
Repayment of related party debt	(1,011,383)	(971,207)
Proceeds from borrowings	195,060	1,171,192
Repayment of borrowings	(181,643)	(2,319,269)
Payment of lendings	(200,000)	(500,000)
Payment of related party lendings	0	(1,250,000)
Proceeds from repayment of lendings	196,146	139,329
Proceeds from repayment of related party lendings	160,754	128,706
Proceeds from sale of subsidiary common stock	500,000	1,000,000
Proceeds from sale of subsidiary preferred stock	8,000,000	0
Proceeds from deferred sale of subsidiary stock	0	1,500,000
Net cash flows from (used in) financing activities	8,258,386	856,409
NET INCREASE (DECREASE) IN CASH	82,513	(238,541)
CASH AT BEGINNING OF PERIOD	465,810	704,351
CASH AT END OF PERIOD	548,323	465,810
SUPPLEMENTAL DISCLOSURES
Interest paid	918,048	918,048
Income taxes paid	0	0
Non-cash investing and financing transaction:
Additional consideration paid for issuance of debt	$ 12,987	$ 12,987

Consolidated Balance Sheets - USD ($)	May 31, 2017	May 31, 2016
Investments and Cash:
Bonds and mortgaged-back securities available for sale, at fair value (amortized cost - 5/31/17 $33,634,403; 5/31/16 $7,170,789)	$ 33,546,645	$ 7,230,261
Equity investments available for sale, at fair value, net	2,422,476	1,488,440
Mortgage-back securities held to maturity, at amortized costs (market value - 5/31/10 $0; 05/31/09 $5,157,936) (cost - 5/31/17 $2,465,221; 5/31/16 $1,550,217)	0	0
Short-term investmentst $1,857,601 total held before restrictions)	0	0
Cash	240,153	250,603
Restricted cash and short term investments	2,165,770	412,959
Total Investments and Cash	38,375,044	9,382,263
Investment income due and accrued	299,555	63,545
Premiums and other accounts receivable, net of allowance for doubtful accounts of $15,053 and $40,658, respectively	540,775	291,856
Prepaid reinsurance premium	418,124	232,647
Demand note receivable from related party	0	0
Funds deposited with Reinsurers	0	0
Deferred policy acquisition costs	367,609	171,883
Furniture, automobile, and equipment, net of accumulated depreciation of $83,845 and $112,627, respectively	37,245	1,233
Note receivable	364,525	360,671
Related party note receivable	960,540	1,121,294
Due from related party	939,945	515,488
Other assets	16,780	14,617
Intangible assets	150,000	150,000
TOTAL ASSETS	42,470,142	12,305,497
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Reserve for losses and loss expenses, net	2,521,921	1,931,779
Reserve for unearned premiums	1,346,668	681,075
Advanced premium	21,740	45,968
Contractual liability for collateral invested, net	327,217	431,814
Accrued expenses and professional fees payable	1,059,206	527,874
Accounts payable	242,708	244,096
Ceded reinsurance payable	422,017	27,898
Due to related party	124,323	124,723
Term and demand notes payable to related party	2,343,999	2,331,473
Demand notes payable to related party	0	0
Notes payable	5,059,385	5,045,969
Accrued interest payable	651,834	561,307
Accrued interest payable to related party	31,853	24,073
Deferred sale of FSC stock	0	1,500,000
Other liabilities	267,133	92,588
Amounts held for accounts of others	21,926,872	2,068,252
Total Liabilities	44,938,919	23,640,986
Mandatorily redeemable convertible Series A Preferred Stock, $.0001 par value per share; 1 million shares authorized; 1,549 shares issued and outstanding at May 31, 2017 and May 31, 2016, respectively; stated liquidation value of $1,000 per share; aggregate liquidation value at May 31, 2017 and May 31, 2016, of $2,247,290 and $2,159,602, respectively.		2,159,602
Total Mandatorily Redeemable Convertible Preferred Stock	2,247,290	2,159,602
Stockholders' Equity (Deficit)
Common stock, $.0001 par value per share; 490 million shares authorized; 385,892,203 and 385,092,203 shares issued and outstanding at May 31, 2017 and May 31, 2016, respectively	38,071	37,991
Additional paid in capital	5,231,327	4,615,374
Accumulated deficit	(35,773,897)	(33,159,411)
Accumulated other comprehensive income	(130,503)	(2,305)
Preferred stock of FSC, par value $1,000 per share; 50,000 authorized, 8,000 shares outstanding (all non-controlling)	8,000,000	0
Noncontrolling Interest	2,189,266	540,420
Total Stockholders' Equity (Deficit)	(4,716,066)	(13,495,091)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	42,470,142	12,305,497
Series A Preferred Stock [Member]
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Mandatorily redeemable		1,670,945
Series C Preferred Stock [Member]
Stockholders' Equity (Deficit)
Series C Preferred Stock, $.0001 par value per share: 10,000 shares authorized; 6,805 shares issued and outstanding at May 31, 2017 and May 31, 2016, respectively; includes $9,698,738 and $8,441,909 accrued Series C dividends, respectively; aggregate liquidation value at May 31, 2017 and May 31, 2016, of $15,729,669 and $14,472,840, respectively.	15,729,669	14,472,840
Mandatorily Redeemable Preferred A Stock [Member]
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Mandatorily redeemable convertible Series A Preferred Stock, $.0001 par value per share; 1 million shares authorized; 1,549 shares issued and outstanding at May 31, 2017 and May 31, 2016, respectively; stated liquidation value of $1,000 per share; aggregate liquidation value at May 31, 2017 and May 31, 2016, of $2,247,290 and $2,159,602, respectively.	$ 2,247,290	$ 2,247,290