Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 16, 2021 | Jun. 30, 2020 | |
Document Information Line Items | |||
Entity Registrant Name | NUVERA COMMUNICATIONS, INC. | ||
Trading Symbol | NUVR | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 5,200,689 | ||
Entity Public Float | $ 79,137,314 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000071557 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-3024 | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0440990 | ||
Entity Address, Address Line One | 27 North Minnesota Street | ||
Entity Address, City or Town | New Ulm | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 56073 | ||
City Area Code | 507 | ||
Local Phone Number | 354-4111 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(g) Security | Common Stock - $1.66 par value |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING REVENUES: | ||
Operating Revenues | $ 64,911,071 | $ 64,941,341 |
OPERATING EXPENSES: | ||
Plant Operations (Excluding Depreciation and Amortization) | 12,648,914 | 12,008,583 |
Cost of Video | 10,223,913 | 10,808,867 |
Cost of Data | 3,436,015 | 2,881,231 |
Cost of Other Non-Regulated Services | 1,586,529 | 2,122,894 |
Depreciation and Amortization | 12,143,330 | 12,120,862 |
Selling, General, and Administrative | 9,854,343 | 10,924,966 |
Total Operating Expenses | 49,893,044 | 50,867,403 |
OPERATING INCOME | 15,018,027 | 14,073,938 |
OTHER INCOME (EXPENSE): | ||
Interest During Construction | 125,443 | 173,591 |
CoBank Patronage Dividends | 647,369 | 403,786 |
Interest/Dividend Income | 204,868 | 174,396 |
Interest Expense | (2,504,988) | (3,404,971) |
Gain (Loss) on Investments | 52,881 | (104,044) |
Other Investment Income | 353,525 | 322,750 |
Total Other Income (Expense) | (1,120,902) | (2,434,492) |
INCOME BEFORE INCOME TAXES | 13,897,125 | 11,639,446 |
INCOME TAXES EXPENSE | 4,061,313 | 3,309,467 |
NET INCOME | $ 9,835,812 | $ 8,329,979 |
NET INCOME PER SHARE | ||
Basic (in Dollars per share) | $ 1.89 | $ 1.61 |
Diluted (in Dollars per share) | 1.89 | 1.60 |
DIVIDENDS PER SHARE (in Dollars per share) | $ 0.2600 | $ 0.5100 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||
Basic (in Shares) | 5,194,006 | 5,184,663 |
Diluted (in Shares) | 5,199,696 | 5,193,449 |
Service [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | $ 6,685,961 | $ 7,215,848 |
Network Access [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | 6,086,090 | 7,566,579 |
Video [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | 12,224,574 | 12,081,824 |
Data [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | 23,377,726 | 21,739,244 |
ACAM/FUSF [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | 12,085,683 | 12,162,631 |
Other Non Regulated [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | $ 4,451,037 | $ 4,175,215 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 9,835,812 | $ 8,329,979 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Unrealized Gains (Losses) on Interest Rate Swaps | (2,460,700) | 146,832 |
Income Tax Benefit (Expense) Related to Unrealized (Gains) Losses on Interest Rate Swaps | 702,284 | (41,906) |
OTHER COMPREHENSIVE INCOME (LOSS) | (1,758,416) | 104,926 |
COMPREHENSIVE INCOME | $ 8,077,396 | $ 8,434,905 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash | $ 8,617,660 | $ 2,993,000 |
Receivables, Net of Allowance for Doubtful Accounts of $160,000 and $120,000 | 1,885,196 | 2,356,742 |
Income Taxes Receivable | 615,587 | |
Materials, Supplies and Inventories | 2,965,960 | 2,827,159 |
Prepaid Expenses and Other Current Assets | 1,000,395 | 826,873 |
Total Current Assets | 15,084,798 | 9,003,774 |
INVESTMENTS & OTHER ASSETS: | ||
Goodwill | 49,903,029 | 49,903,029 |
Intangibles | 21,639,293 | 24,085,250 |
Other Investments | 9,960,187 | 9,453,578 |
Right of Use Asset | 1,211,707 | 1,558,164 |
Other Assets | 299,155 | 182,581 |
Total Investments and Other Assets | 83,013,371 | 85,182,602 |
PROPERTY, PLANT & EQUIPMENT: | ||
Communications Plant | 171,961,736 | 163,630,396 |
Other Property & Equipment | 25,758,591 | 23,301,293 |
Video Plant | 11,143,951 | 10,732,919 |
Total Property, Plant and Equipment | 208,864,278 | 197,664,608 |
Less Accumulated Depreciation | 138,385,628 | 129,605,576 |
Net Property, Plant & Equipment | 70,478,650 | 68,059,032 |
TOTAL ASSETS | 168,576,819 | 162,245,408 |
CURRENT LIABILITIES: | ||
Current Portion of Long-Term Debt, Net of Unamortized Loan Fees | 6,788,430 | 4,511,844 |
Accounts Payable | 1,604,735 | 1,807,334 |
Accrued Income Taxes | 729,600 | |
Other Accrued Taxes | 258,691 | 232,862 |
Deferred Compensation | 319,754 | 311,047 |
Accrued Compensation | 2,247,057 | 2,511,798 |
Other Accrued Liabilities | 811,003 | 1,046,034 |
Total Current Liabilities | 12,029,670 | 11,150,519 |
LONG-TERM DEBT, Net of Unamortized Loan Fees | 47,161,441 | 51,072,286 |
NONCURRENT LIABILITIES: | ||
Loan Guarantees | 273,805 | 319,346 |
Deferred Income Taxes | 16,988,409 | 16,470,055 |
Unrecognized Tax Benefit | 47,363 | |
Other Accrued Liabilities | 1,283,834 | 1,454,777 |
Financial Derivative Instruments | 2,721,118 | 260,418 |
Deferred Compensation | 450,473 | 759,952 |
Total Noncurrent Liabilities | 21,765,002 | 19,264,548 |
COMMITMENTS AND CONTINGENCIES: | ||
STOCKHOLDERS' EQUITY: | ||
Preferred Stock - $1.66 Par Value, 10,000,000 Shares Authorized, No Shares Issued and Outstanding | ||
Common Stock - $1.66 Par Value, 90,000,000 Shares Authorized, 5,200,689 and 5,189,218 Shares Issued and Outstanding | 8,667,816 | 8,648,697 |
Accumulated Other Comprehensive Loss | (1,944,511) | (186,095) |
Unearned Compensation | 149,100 | 189,255 |
Retained Earnings | 80,748,301 | 72,106,198 |
Total Stockholders' Equity | 87,620,706 | 80,758,055 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 168,576,819 | $ 162,245,408 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts (in Dollars) | $ 160,000 | $ 120,000 |
Preferred stock par value (in Dollars per share) | $ 1.66 | $ 1.66 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock par value (in Dollars per share) | $ 1.66 | $ 1.66 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 5,200,689 | 5,189,218 |
Common stock, shares outstanding | 5,200,689 | 5,189,218 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 9,835,812 | $ 8,329,979 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 12,241,886 | 12,219,418 |
Unrealized (Gains) Losses on Investments | (47,640) | 104,044 |
Undistributed Earnings of Other Equity Investment | (392,690) | (379,456) |
Noncash Patronage Refund | (143,692) | (100,946) |
Stock Issued in Lieu of Cash Payment | 287,819 | 311,617 |
Distributions from Equity Investments | 100,000 | 200,000 |
Stock-based Compensation | 69,452 | 190,853 |
Changes in Assets and Liabilities: | ||
Receivables | 476,079 | 1,625,368 |
Income Taxes Receivable | (615,587) | 305,751 |
Materials, Supplies, and Inventories | (138,801) | (245,770) |
Prepaid Expenses | (156,873) | (72,936) |
Other Assets | (121,107) | (165,888) |
Accounts Payable | (89,247) | (946,158) |
Accrued Income Taxes | (729,600) | 729,600 |
Other Accrued Taxes | 25,829 | 3,734 |
Other Accrued Liabilities | (324,258) | 136,267 |
Deferred Income Tax | 1,268,000 | 287,360 |
Deferred Compensation | (300,772) | 441,827 |
Net Cash Provided by Operating Activities | 21,244,610 | 22,974,664 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to Property, Plant, and Equipment, Net | (12,002,735) | (13,046,645) |
Grants Received for Construction of Plant | 650,208 | 390,922 |
Purchase of Intangible | (877,814) | |
Other, Net | (68,128) | (42,164) |
Net Cash Used in Investing Activities | (12,298,469) | (12,697,887) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal Payments of Long-Term Debt | (4,621,815) | (6,110,400) |
Loan Proceeds | 2,889,000 | |
Repurchase of Common Stock | (238,612) | (114,126) |
Dividends Paid | (1,350,054) | (2,644,020) |
Net Cash Used in Financing Activities | (3,321,481) | (8,868,546) |
NET INCREASE IN CASH | 5,624,660 | 1,408,231 |
CASH at Beginning of Period | 2,993,000 | 1,584,769 |
CASH at End of Period | 8,617,660 | 2,993,000 |
Supplemental cash flow information: | ||
Cash paid for interest | 2,031,829 | 3,354,128 |
Net cash paid for income taxes | $ 4,138,500 | $ 1,986,753 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS` EQUITY - USD ($) | Common Stock [Member] | AOCI Attributable to Parent [Member] | Unearned Compensation [Member] | Retained Earnings [Member] | Total |
BALANCE at Dec. 31, 2018 | $ 8,625,430 | $ (291,021) | $ 79,784 | $ 66,181,285 | $ 74,595,478 |
BALANCE (in Shares) at Dec. 31, 2018 | 5,175,258 | ||||
Directors Stock Plan | $ 15,935 | 164,003 | 179,938 | ||
Directors Stock Plan (in Shares) | 9,561 | ||||
Employee Stock Plan | $ 9,985 | 105,042 | 115,027 | ||
Employee Stock Plan (in Shares) | 5,991 | ||||
Restricted Stock Grant | 190,853 | 190,853 | |||
Exercise of RSU's | $ 7,332 | (81,382) | 74,050 | ||
Exercise of RSU's (in Shares) | 4,399 | ||||
Repurchases of Common Stock | $ (9,985) | (104,141) | (114,126) | ||
Repurchases of Common Stock (in Shares) | (5,991) | ||||
Net Income | 8,329,979 | 8,329,979 | |||
Dividends | (2,644,020) | (2,644,020) | |||
Unrealized Gain (loss) on Interest Rate Swap | 104,926 | 104,926 | |||
BALANCE at Dec. 31, 2019 | $ 8,648,697 | (186,095) | 189,255 | 72,106,198 | 80,758,055 |
BALANCE (in Shares) at Dec. 31, 2019 | 5,189,218 | ||||
Directors Stock Plan | $ 20,440 | 179,464 | 199,904 | ||
Directors Stock Plan (in Shares) | 12,264 | ||||
Employee Stock Plan | $ 11,618 | 92,947 | 104,565 | ||
Employee Stock Plan (in Shares) | 6,971 | ||||
Restricted Stock Grant | 117,332 | 117,332 | |||
Exercise of RSU's | $ 9,554 | (157,487) | 100,053 | (47,880) | |
Exercise of RSU's (in Shares) | 5,732 | ||||
Repurchases of Common Stock | $ (22,493) | (216,119) | (238,612) | ||
Repurchases of Common Stock (in Shares) | (13,496) | ||||
Net Income | 9,835,812 | 9,835,812 | |||
Dividends | (1,350,054) | (1,350,054) | |||
Unrealized Gain (loss) on Interest Rate Swap | (1,758,416) | (1,758,416) | |||
BALANCE at Dec. 31, 2020 | $ 8,667,816 | $ (1,944,511) | $ 149,100 | $ 80,748,301 | $ 87,620,706 |
BALANCE (in Shares) at Dec. 31, 2020 | 5,200,689 |
BUSINESS DESCRIPTION AND SUMMAR
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | NOTE 1 – BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Nuvera is a diversified communications company headquartered in New Ulm, Minnesota with more than 115 years of experience in the communications business. Our principal line of business is the operation of seven communications companies. Our businesses consist of connecting customers to our state-of-the-art, fiber-rich communications network, providing managed services, switched service and dedicated private lines, connecting customers to long distance service providers and providing many other services associated with our company. We also provide IPTV, CATV, Internet access services, including high-speed broadband access, and long distance service. We also install and maintain communications systems to the areas in and around our service territories in southern Minnesota and northern Iowa. Basis of Presentation and Principles of Consolidation Our accounting policies conform with GAAP and rules and regulations of the SEC and, where applicable, conform to the accounting principles as prescribed by federal and state telephone utility regulatory authorities. We presently give accounting recognition to the actions of regulators where appropriate in preparing general purpose financial statements for most public utilities. In general, the type of regulation covered by this statement permits rates (prices) for some services to be set at levels intended to recover the estimated costs of providing regulated services or products, including the cost of capital (interest costs and a provision for earnings on stockholders’ investments). Our consolidated financial statements report the financial condition and results of operations for Nuvera and its subsidiaries in one business segment: the Communications Segment. Inter-company transactions have been eliminated from the consolidated financial statements. Classification of Costs and Expenses Cost of services includes all costs related to delivery of communication services and products. These operating costs include all costs of performing services and providing related products including engineering, network monitoring and transportation costs. Selling, general and administrative expenses include direct and indirect selling expenses, customer service, billing and collections, advertising and all other general and administrative costs associated with our operations. Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires our management to make estimates and judgements that affect the reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and liabilities. The estimates and judgements used in the accompanying consolidated financial statements are based on our management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from those estimates and assumptions. Revenue Recognition See Note 2 – “Revenue Recognition” for a discussion of our revenue recognition policies. Receivables As of December 31, 2020 and 2019, our consolidated receivables totaled $1,885,196 and $2,356,742, net of the allowance for doubtful accounts. We believe our receivables as of December 31, 2020 and 2019 are recorded at their fair value. As there may be exposure or risk with receivables, we routinely monitor our receivables and adjust the allowance for doubtful accounts when events occur that may potentially affect the collection of our receivables. Allowance for Doubtful Accounts We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. In making the determination of the appropriate allowance for doubtful accounts, we consider specific accounts, historical write-offs, changes in customer relationships, credit worthiness and concentrations of credit risk. Specific accounts receivable are written off once a determination is made that the account is uncollectible. Additional allowances may be required if the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments. The activity in our allowance for doubtful accounts includes the following: Year Ended December 31 2020 2019 Balance at beginning of year $ 120,000 $ 113,000 Additions charged to costs and expenses 185,251 255,491 Accounts written off, net of recoveries (145,251) (248,491) Balance at end of year $ 160,000 $ 120,000 Inventories Inventory includes parts, materials and supplies stored in our warehouses to support basic levels of service and maintenance as well as scheduled capital projects and equipment awaiting configuration for customers. Inventory also includes (i) parts and equipment shipped directly from vendors to customer locations while in transit and (ii) parts and equipment returned from customers that are being returned to vendors for credit. Our inventory value as of December 31, 2020 and 2019 was $2,965,960 and $2,827,159. We value inventory using the lower of cost or net realizable value. Similar to our allowance for doubtful accounts, we make estimates related to the valuation of inventory. As of December 31, 2020 and 2019, we had no inventory reserve. We adjust our inventory carrying value for estimated obsolescence or unmarketable inventory to the net realizable value based upon assumptions about future demand and market conditions. As market and other conditions change, we may establish additional inventory reserves at a time when the facts that give rise to a lower value are warranted. We use the first-in, first-out method of inventory costing for our non-retail inventory. We use the average cost method of inventory costing for our retail inventory. Property, Plant and Equipment We record impairment losses on long-lived assets used in operations when events and circumstances indicate the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. In assessing the recoverability of long-lived assets, we compare the carrying value to the undiscounted future cash flows the assets are expected to generate. If the total of the undiscounted future cash flows is less than the carrying amount of the assets, we would write down those assets based on the excess of the carrying amount over the fair value of the assets. Fair value is generally determined by calculating the discounted future cash flows expected from those assets. Changes in these estimates could have a material adverse effect on the assessment of long-lived assets, thereby requiring a write-down of the assets. Write-downs of long-lived assets are recorded as impairment charges and are a component of operating expenses. We have reviewed our long-lived assets and concluded that no impairment charge on our long-lived assets is necessary. We use the group life method (mass asset accounting) to depreciate the assets of our communications companies. Communications plant acquired in a given year is grouped into similar categories and depreciated over the remaining estimated useful life of the group. When an asset is retired, both the asset and the accumulated depreciation associated with that asset are removed from the books. Due to rapid changes in technology, selecting the estimated economic life of communications plant and equipment requires a significant amount of judgment. We periodically review data on expected utilization of new equipment, asset retirement activity and net salvage values to determine adjustments to our depreciation rates. We have not made any significant changes to the lives of these assets in the two year period ended December 31, 2020. Goodwill and Intangible Assets We amortize our definite-lived intangible assets over their estimated useful lives. Customer relationships are amortized over fourteen to fifteen years, regulatory rights are amortized over fifteen years and trade names are amortized over three to five years. Intangible assets with finite lives are amortized over their respective estimated useful lives. In accordance with GAAP, goodwill and intangible assets with indefinite useful lives are not amortized, but tested for impairment at least annually. See Note 6 – “Goodwill and Intangibles” for a more detailed discussion of the intangible assets and goodwill. Our goodwill balance was $49,903,029 as of December 31, 2020 and 2019. In the fourth quarter of 2020 and 2019 we completed our annual impairment tests for existing acquired goodwill. This testing resulted in no impairment charges to goodwill at December 31, 2020 and 2019. Investments and Other Assets We are a co-investor with other communication companies in several partnerships and limited liability companies. These joint ventures make it possible to offer services to customers, including digital video services and fiber transport services that we would have difficulty offering on our own. These joint ventures also make it possible to invest in new technologies with a lower level of financial risk. We use the equity method of accounting for these investments that reflects original cost and recognition of our share of the net income or losses from the respective operations. See Note 17 – “Segment Information” for a listing of our investments. Investments in other companies that are not intended for resale and are not accounted for on the equity method of accounting are valued at fair value where there are readily determinable fair values. Investments in other companies that are not intended for resale and are not accounted for on the equity method of accounting are valued at cost where there are no readily determinable fair values. See Note 13 – “Other Investments” for additional information regarding our investments. Advertising Expense Advertising is expensed as incurred. Advertising expense charged to operations was $515,976 and $364,932 in 2020 and 2019. Interest During Construction We include an average cost of debt for the construction of plant in our communications plant accounts. Income Taxes We account for income taxes in accordance with GAAP, which requires an asset and liability approach to financial accounting and reporting for income taxes. Accordingly, deferred tax assets and liabilities arise from the difference between the tax basis of an asset or liability and its reported amount in the financial statements and operating and tax credit carryforwards. Deferred tax assets and liabilities are determined using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. We recognize interest and penalties related to income tax matters as income tax expense. Income tax expense or benefit is the tax payable or refundable, respectively, for the period plus or minus the change in deferred tax assets and liabilities during the period. GAAP requires us to recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. See Note 9 – “Income Taxes” for additional information regarding income taxes. Collection of Taxes from Customers Sales, excise and other taxes are imposed on most of our sales to nonexempt customers. We collect these taxes from our customers and remit the entire amounts to governmental authorities. Our accounting policies dictate that we exclude these taxes collected and remitted from our revenues and expenses. Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments and receivables. We deposit our cash investments in high credit quality financial institutions accounts which, at times, may exceed federally insured limits. We have not experienced any losses in these accounts and do not believe we are exposed to any significant credit risk. Concentrations of credit risk with respect to trade receivables are limited due to our large number of customers. Earnings and Dividends Per Share Basic and diluted net income per share are calculated as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Basic Diluted Basic Diluted Net Income $ 9,835,812 $ 9,835,812 $ 8,329,979 $ 8,329,979 Weighted-average common 5,194,006 5,199,696 5,184,663 5,193,449 Net income per share $ 1.89 $ 1.89 $ 1.61 $ 1.60 The weighted-average shares outstanding, basic and diluted, are calculated as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Basic Diluted Basic Diluted Weighted-average common 5,194,006 5,194,006 5,184,663 5,184,663 Potentially Dilutive RSU's - 5,690 - 8,786 Weighted-average common 5,194,006 5,199,696 5,184,663 5,193,449 Nuvera’s BOD reviews quarterly dividend declarations based on our anticipated earnings, capital requirements and our operating and financial conditions. Recent Accounting Developments In March, 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU No. 2101-01, “Reference Rate Reform (Topic 848): Scope. ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2020-04 and ASU 2021-01 are both elective and are effective upon issuance through December 31, 2022. The Company is evaluating the impact this update will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The second step measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under ASU 2017-04, a company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 will be applied prospectively and is effective for annual or interim goodwill impairment tests in the fiscal years beginning January 1, 2021. Early adoption is permitted. The Company adopted ASU 2017-04 on January 1, 2021 and expects that adoption of the standard will not have a material effect on our financial position, results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosures relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. The Company is required to adopt ASU 2016-13 for fiscal periods beginning after December 15, 2022, including interim periods within that fiscal year. Early adoption as of December 15, 2018 is permitted. Management is evaluating the impact the adoption of ASU 2016-13 will have on the Company’s financial statements (if any). We have reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to us or that no material effect is expected on our financial position and results of operations. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 2 – REVENUE RECOGNITION The Company recognizes revenue based on the following single principles-based, five-step model that is applied to all contracts with customers. These steps include (1) identify the contract(s) with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when each performance obligation is satisfied. Our revenue contracts with customers may include a promise or promises to deliver services such as broadband, video or voice services. Promised services are considered distinct as the customer can benefit from the services either on their own or together with other resources that are readily available to the customer and the Company’s promise to transfer service to the customer is separately identifiable from other promises in the contract. The Company accounts for services as separate performance obligations. Each service is considered a single performance obligation as it is providing a series of distinct services that are substantially the same and have the same pattern of transfer. The transaction price is determined at contract inception and reflects the amount of consideration to which we expect to be entitled in exchange for transferring service to the customer. This amount is generally equal to the market price of the services promised in the contract and may include promotional or bundling discounts. The majority of our prices are based on tariffed rates filed with regulatory bodies or standard company price lists. The transaction price excludes amounts collected on behalf of third parties such as sales taxes and regulatory fees. Conversely, nonrefundable up-front fees, such as service activation and set-up fees, which are immaterial to our overall revenues, are included in the transaction price. In determining the transaction price, we consider our enforceable rights and obligations within the contract. We do not consider the possibility of a contract being cancelled, renewed or modified, which is consistent with Accounting Standards Codification (ASC) 606-10-32-4. The transaction price is allocated to each performance obligation based on the standalone selling price of the service, net of the related discount, as applicable. Revenue is recognized when performance obligations are satisfied by transferring service to the customer as described below. Significant Judgments The Company often provides multiple services to a customer. Provision of CPE and additional service tiers may have a significant level of integration and interdependency with the subscription voice, video, Internet or connectivity services. Judgement is required to determine whether provision of CPE, installation services and additional service tiers are considered distinct and accounted for separately, or not distinct and accounted for together with the subscription services. Allocation of the transaction price to the distinct performance obligations in bundled service subscriptions requires judgement. The transaction price for a bundle of services is frequently less than the sum of standalone selling prices of each individual service. Bundled discounts are allocated proportionally to the selling price of each individual service within the bundle. Standalone selling prices for the Company’s services are directly observable. Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the years ended December 31, 2020 and 2019: Twelve Months Ended December 31, 2020 2019 Voice services¹ $ 7,594,617 8,107,290 Network access¹ 6,229,549 7,761,786 Video ¹ 12,215,923 12,070,242 Data ¹ 21,416,969 19,859,051 Directory² 794,552 827,978 Other contracted revenue³ 2,403,107 2,355,790 Other 4 1,292,700 979,076 Revenue from customers 51,947,417 51,961,213 Subsidy and other revenue 5 12,963,654 12,980,128 Total revenue $ 64,911,071 $ 64,941,341 ¹ Month-to-Month contracts billed and consumed in the same month. ² Directory revenue is contracted annually, however, this revenue is recognized ³ This includes long-term contracts where the revenue is recognized monthly over 4 This includes CPE and other equipment sales. 5 This includes governmental subsidies and lease revenue outside the scope of ASC 606. For the year ended December 31, 2020, approximately 78.04% of our total revenue was from month-to-month and other contracted revenue from customers. Approximately 19.97% of our total revenue was from revenue sources outside of the scope of ASC 606. The remaining 1.99% of total revenue was from other sources including CPE and equipment sales and installation. For the year ended December 31, 2019, approximately 78.50% of our total revenue was from month-to-month and other contracted revenue from customers. Approximately 20.00% of our total revenue was from revenue sources outside of the scope of ASC 606. The remaining 1.50% of total revenue was from other sources including CPE and equipment sales and installation. A significant portion of our revenue is derived from customers who may generally cancel their subscriptions at any time without penalty. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of the future revenue to be recognized from our existing customer base. Revenue from customers with a contractually specified term and non-cancelable service period will be recognized over the term of such contracts, which is generally 3 to 10 years for these types of contracts. Nature of Services Revenues are earned from our customers primarily through the connection to our networks, digital and commercial TV programming, Internet services (high-speed broadband), and hosted and managed services. Revenues for these services are billed based on set rates for monthly service or based on the amount of time the customer is utilizing our facilities. The revenue for these services is recognized over time as the service is rendered. Voice Services – We receive recurring revenue for basic voice services that enable end-user customers to make and receive telephone calls within a defined local calling area for a flat monthly fee. In addition to subscribing to basic local telephone services, our customers may choose from multiple voice service plans with a variety of custom calling features such as call waiting, call forwarding, caller identification and voicemail. Our VoIP digital phone service is also available as an alternative to the traditional telephone line. Customers may generally cancel their subscriptions at any time without penalty. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized over a one month service period as the subscription services are delivered. Other optional services purchased by the customer are generally accounted for as a distinct performance obligation when purchased and revenue is recognized when the service is provided. Network Access – We provide access services to other communication carriers for the use of our facilities to terminate or originate long distance calls on our network. Additionally, we bill monthly SLCs to substantially all of our customers for access to the public switched network. These monthly SLCs are regulated and approved by the FCC. In addition, network access revenue is derived from several federally administered pooling arrangements designed to provide support and distribute funding to us. Revenues earned from other communication carriers accessing our network are based on the utilization of our network by these carriers as measured by minutes of use on the network or special access to the network by the individual carriers on a monthly basis. Revenues are billed at tariffed access rates for both interstate and intrastate calls and are recognized into revenue monthly based on the period the access was provided. The NECA pools and redistributes the SLCs to various communication providers through the CAF. These revenues are earned and recognized into revenue on a monthly basis. Any adjustments to these amounts received by NECA are adjusted for in revenue upon receipt of the adjustment. Video Service – We provide a variety of enhanced video services on a monthly recurring basis to our customers. We also receive monthly recurring revenue from our subscribers for providing commercial TV programming in competition with local CATV, satellite dish TV and off-air TV service providers. We serve twenty-two communities with our IPTV services and five communities with our CATV services. Customers may generally cancel their subscriptions at any time without penalty. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized over a one month service period as the subscription services are delivered. Other optional services purchased by the customer are generally accounted for as a distinct performance obligation when purchased and revenue is recognized when the service is provided. Data Service – We provide high speed Internet to business and residential customers depending on the nature of the network facilities that are available, the level of service selected and the location. Our revenue is earned based on the offering of various flat rate packages based on the level of service, data speeds and features. We also provide e-mail and managed services, such as web hosting and design, on-line file back up and on-line file storage. Data customers may generally cancel their subscriptions at any time without penalty. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized over a one month service period as the subscription services are delivered. Other optional services purchased by the customer are generally accounted for as a distinct performance obligation when purchased and revenue is recognized when the service is provided. Directory – Our directory publishing revenue through an outside in our telephone directories recurs monthly and is recognized into revenue on a monthly basis. Other Contracted Revenue - Managed services and certain other data customers include fiber-delivered communications and managed information technology solutions to mainly business customers, as well as high-capacity last-mile data connectivity services to wireless and wireline carriers. Services are primarily offered on a subscription basis with a contractually specified and non-cancelable service period. The non-cancelable contract terms for these customers generally range from 3 to 10 years. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized ratably over the contract period as the subscription services are delivered. These services are billed as monthly recurring charges to customers. Other – We also generate revenue from the sales, service and installation of CPE and other services. Sales and service of CPE are billed and recognized into revenue once the sale or service is complete or delivered. These sales and services are generally short-term in nature and are completed within one month. Other revenues are immaterial to our total revenues. Subsidy and Other Revenue outside the Scope of ASC 606 – We receive subsidies from governmental entities to operate and expand our networks. In addition, we have revenue from leasing arrangements. Both of these revenue streams are outside of the scope of ASC 606. Interstate access rates are established by a nationwide pooling of companies known as NECA. The FCC established NECA in 1983 to develop and administer interstate access service rates, terms and conditions. Revenues are pooled and redistributed on the basis of a company's actual or average costs. There has been a change in the composition of interstate access charges in recent years, shifting more of the charges to the end user and reducing the amount of access charges paid by the IXC’s. We believe this trend will continue. Intrastate access rates are filed with state regulatory commissions in Minnesota and Iowa. The Company currently receives funding based on the A-CAM as described below, with the exception of Scott-Rice, which receives funding from the FUSF. Scott-Rice’s settlements from the pools are based on nationwide average schedules, which includes the pooling and redistribution of revenues based on a company’s actual or average costs as described below. A-CAM As described above, with the exception of Scott-Rice, the remainder of our communications companies receive funding from A-CAM. On February 25, 2019, the FCC issued Public Notice DA 19-115, which contained revised offers of A-CAM support and associated revised service deployment obligations. On February 27, 2019, the Company’s BOD authorized and directed the Company to accept the FCC’s revised offer of A-CAM support and the revised associated service deployment obligations. Under the revised FCC offer Notice, the Company will be entitled to annually receive (i) $596,084 for its Iowa operations and (ii) $8,354,481 for its Minnesota operations. The Company will receive the revised A-CAM offer over the next 10 years starting in 2019. The Company will use the additional support that it receives through the A-CAM program to continue to meet its defined broadband build-out obligations, which the Company is currently completing. A letter of acceptance to elect the revised A-CAM support was filed by the Company with the FCC on March 8, 2019. The FCC accepted the Company’s letter on March 11, 2019. Accounts Receivable, Contract Assets and Contract Liabilities The following table provides information about our receivables, contracts assets and contract liabilities from revenue contracts with our customers: Year Ended December 31, 2020 2019 Accounts receivable, net $ 1,142,476 $ 1,618,555 Contract assets 421,557 176,299 Contract liabilities 667,868 609,989 Accounts Receivable A receivable is recognized in the period the Company provides goods and services when the Company’s right to consideration is unconditional. Payment terms on invoiced amounts are generally 30-60 days. Contract Assets Contract assets include costs that are incremental to the acquisition of a contract. Incremental costs are those that result directly from obtaining a contract or costs that would not have been incurred if the contract had not been obtained, which primarily relates to sales commissions. In 2019, we expanded our commission plans and began deferring and amortizing these costs over the expected customer life as the contract obligations are satisfied. We determined that the expected customer life is the expected period of benefit as the commission on the renewal contact is commensurate with the commission on the initial contract. During the years ended December 31, 2020 and 2019, the Company recognized expenses of $82,684 and $24,095, respectively, related to deferred contract acquisition costs. Short-term contract assets are included in current assets under prepaid expenses and other current assets. Long-term contract assets are included in investments and other assets under other assets. Contract Liabilities Contract liabilities include deferred revenues related to advanced payments for services and nonrefundable, upfront service activation and set-up fees, which under the new standard are generally deferred. In addition, contract liabilities include customer deposits that are not recognized into revenue, but are instead returned to the customer after a holding period. Short-term contract liabilities include deferred revenues for advanced payments for managed services and other long-term contracts. This includes the current portion of the deferred revenues that will be recognized monthly within one year. Short-term contract liabilities are included in current liabilities under other accrued liabilities. Long-term contract liabilities include deferred revenues for advanced payments for managed services and other long-term contracts. This includes the portion longer than one year and the corresponding deferred revenues are recognized into revenue on a monthly basis based on the term of the contract. Long-term contract liabilities are included in noncurrent liabilities under other accrued liabilities. During the years ended December 31, 2020 and 2019, the Company recognized revenues of $251,339 and $229,134, respectively, related to deferred revenues. Performance Obligations ASC 606, Revenue from Contracts with Customers, requires that the Company disclose the aggregate amount of the transaction price that is allocated to remaining performance obligations that are unsatisfied as of December 31, 2020. The guidance provides certain practical expedients that limit this requirement. The service revenue contracts of the Company meet the following practical expedients provided by ASC 606: 1. The performance obligation is part of a contract that has an original expected duration of one year or less. 2. Revenue is recognized from the satisfaction of the performance obligations in the amount billable to the customer in accordance with ASC 606-10-55-18. The Company has elected these practical expedients. Performance obligations related to our service revenue contracts are generally satisfied over time. For services transferred over time, revenue is recognized based on amounts invoiced to the customer as the Company has concluded that the invoice amount directly corresponds with the value of services provided to the customer. Management considers this a faithful depiction of the transfer of control as services are substantially the same and have the same pattern of transfer over the life of the contract. As such, revenue related to unsatisfied performance obligations that will be billed in future periods has not been disclosed. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Lessee, Operating Leases [Text Block] | NOTE 3 – LEASES In February 2016, the FASB issued ASU 2016-02, “Leases,” which, together with its related clarifying ASUs, provided revised guidance for lease accounting and related disclosure requirements and established a right-to-use (ROU) model that requires lessees to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. This guidance was effective for us on January 1, 2019. We adopted the standard using the modified retrospective method which applied to leases that exist or were entered into on or after January 1, 2019. The Company elected to utilize the package of practical expedients that allows to 1) not reassess whether any expired or existing contracts are or contain leases, 2) retain the existing classification of lease contracts as of the date of adoption and 3) not reassess initial direct costs for any existing leases. The ASU also requires disclosures to allow financial statement users to better understand the amount, timing and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The following table includes the ROU and operating lease liabilities as of December 31, 2020. Right of Use Asset Balance December 31, 2020 Balance December 31, 2019 Operating Lease right-of-use assets $ 1,211,707 $ 1,558,164 Operating Lease Liability Balance Balance December 31, 2019 Short-Term Operating Lease Liability $ 243,218 $ 415,949 Long-Term Operating Lease Liability 993,596 1,146,132 Total $ 1,236,814 $ 1,562,081 Maturity analysis under these lease agreements are as follows: Maturity Analysis 2021 $ 311,200 2022 297,729 2023 297,515 2024 184,649 2025 67,140 Thereafter 365,064 Total 1,523,297 Less Imputed interest (286,483) Present Value of Operating Leases $ 1,236,814 We amortize our leases over the shorter of the term of the lease or the useful life of the asset. Lease expense for the years ended December 31, 2020 and 2019 was $521,846 and $428,680, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 4 – FAIR VALUE MEASUREMENTS We have adopted the rules prescribed under GAAP for our financial assets and liabilities. GAAP includes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. Level 2: Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs that are derived principally from or corroborated by observable market data. Level 3: Inputs are derived from valuation techniques where one or more significant inputs or value drivers are unobservable. We have used financial derivative instruments to manage our overall cash flow exposure to fluctuations in interest rates. We accounted for derivative instruments in accordance with GAAP that requires derivative instruments to be recorded on the balance sheet at fair value. Changes in fair value of derivative instruments must be recognized in earnings unless specific hedge accounting criteria are met, in which case, the gains and losses are included in other comprehensive income rather than in earnings. We have entered into IRSAs with our lender, CoBank, to manage our cash flow exposure to fluctuations in interest rates. These instruments are designated as cash flow hedges and are effective at mitigating the risk of fluctuations on interest rates in the market place. Any gains or losses related to changes in the fair value of these derivatives are accounted for as a component of accumulated other comprehensive income (loss) for as long as the hedge remains effective. The fair value of our IRSAs is discussed in Note 8 – “Interest Rate Swaps”. The fair value of our swap agreement was determined based on Level 2 inputs. Other Financial Instruments Other Investments - We conducted an evaluation of our investments in all of our investees in connection with the preparation of our audited financial statements at December 31, 2020. As of December 31, 2020, we believe the carrying value of our investments is not impaired. Debt – We estimate the fair value of our long-term debt based on the discounted future cash flows we expect to pay using current rates of borrowing for similar types of debt. Fair value of the debt approximates carrying value. Other Financial Instruments - Our financial instruments also include cash equivalents, trade accounts receivable and accounts payable where the current carrying amounts approximate fair market value. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 5 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of December 31, 2020 and 2019, include the following: 2020 2019 Communications Plant: Land $ 712,503 $ 712,503 Buildings 10,736,080 10,612,823 Other Support Assets 17,990,916 17,418,983 Central Office and Circuit Equipment 57,781,339 55,273,657 Cable and Wire Facilities 80,701,208 74,402,816 Other Plant and Equipment 404,883 404,883 Plant Under Construction 3,634,807 4,804,731 171,961,736 163,630,396 Other Property 25,758,591 23,301,293 Video Plant 11,143,951 10,732,919 Total Property, Plant and Equipment $ 208,864,278 $ 197,664,608 Depreciation is computed using the straight-line method based on the estimated service or remaining useful lives of the various classes of depreciable assets. Depreciation expense was $8,819,559 and $8,797,091 in 2020 and 2019. The composite depreciation rates on communications plant and equipment for the two years ended December 31, 2020 and 2019, respectively, were 4.3% and 4.6%. Other property and video plant is depreciated over estimated useful lives of three to twenty-five years. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 6 - GOODWILL AND INTANGIBLES We account for goodwill and other intangible assets under GAAP. Under GAAP, goodwill and intangible assets with indefinite useful lives are not amortized, but are instead tested for impairment (i) on at least an annual basis and (ii) when changes in circumstances indicate that the fair value of goodwill may be below its carrying value. These circumstances include, but are not limited to (i) a significant adverse change in the business climate, (ii) unanticipated competition or (iii) an adverse action or assessment by a regulator. Determining impairment involves estimating the fair value of a reporting unit using a combination of (i) the income or DCF approach and (ii) the market approach that utilizes comparable companies’ data. If the carrying amount of a reporting unit exceeds its fair value, the amount of the impairment loss must be measured. The impairment loss is calculated by comparing the implied fair value of the reporting unit’s goodwill to its carrying amount. In calculating the implied fair value of the reporting unit’s goodwill, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities is the implied value of goodwill. We recognize impairment loss when the carrying amount of goodwill exceeds its implied fair value. Our goodwill totaled $49,903,029 at December 31, 2020 and 2019. In 2020 and 2019, we engaged an independent valuation firm to aid in the completion of our annual impairment testing for existing goodwill. For 2020 and 2019, the testing results indicated no impairment charge to goodwill as the determined fair value was sufficient to pass the first step of the impairment test. Our intangible assets subject to amortization consist of acquired customer relationships, regulatory rights and trade names. We amortize intangible assets with finite lives over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment. In addition, we periodically reassess the carrying value, useful lives and classifications of our identifiable intangible assets. The components of our identified intangible assets are as follows: December 31, 2020 December 31, 2019 Gross Carrying Amount Gross Carrying Amount Useful Lives Accumulated Amortization Accumulated Amortization Definite-Lived Intangible Assets Customers Relationships 14-15 yrs $ 42,878,445 $ 25,811,014 $ 42,878,445 $ 22,815,928 Regulatory Rights 15 yrs 4,000,000 3,466,635 4,000,000 3,199,971 Trade Name 3-5 yrs 310,106 149,423 880,106 657,402 Indefinitely-Lived Intangible Assets Video Franchise 3,000,000 - 3,000,000 - Spectrum 877,814 - - - Total $ 51,066,365 $ 29,427,072 $ 50,758,551 $ 26,673,301 Net Identified Intangible Assets $ 21,639,293 $ 24,085,250 Amortization expense related to the definite-lived assets was $3,323,771 for 2020 and $3,323,771 for 2019. Amortization expense for the next five years is estimated to be: 2021 $ 3,323,726 2022 $ 1,952,376 2023 $ 1,660,295 2024 $ 1,623,654 2025 $ 1,618,732 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | NOTE 7 - LONG-TERM DEBT We have a MLA with CoBank. Nuvera and its respective subsidiaries also have security agreements under which substantially all the assets of Nuvera and its respective subsidiaries have been pledged to CoBank as collateral. In addition, Nuvera and its respective subsidiaries have guaranteed all the obligations under the credit facility. These mortgage notes are required to be paid in quarterly installments covering principal and interest, beginning in September 2018 and maturing on July 31, 2025. Secured Credit Facility: MLA RX0583 ● RX0583(A)-T4 - $64,550,000 term note with interest payable quarterly. Final maturity date of this note is July 31, 2025. Twenty-eight quarterly principal payments of $1,152,600 are due commencing September 30, 2018 through June 30, 2025. A final balloon payment of $32,277,200 is due at maturity of this note on July 31, 2025. ● RX0583(A)-T5 - $10,000,000 revolving note with interest payable quarterly. Final maturity date of this note is July 31, 2025. We currently have drawn $0 on this revolving note as of December 31, 2020. RX0583(A)-T4 and RX0583(A)-T5 initially bear interest at a “LIBOR Margin” rate equal to 3.25 percent over the applicable LIBOR rate. The LIBOR Margin decreases as our “Leverage Ratio” decreases. We generally use variable-rate debt to finance our operations, capital expenditures and acquisitions. These variable-rate debt obligations expose us to variability in interest payments due to changes in interest rates. The terms of our credit facility with CoBank require that we enter into interest rate agreements designed to protect us against fluctuations in interest rates, in an aggregate principal amount and for a duration determined under the credit facility. As described in Note 8 – “Interest Rate Swaps,” on August 1, 2018 we entered into an IRSA with CoBank covering 25 percent of our existing debt balance or $16,137,500 of our aggregate indebtedness to CoBank at August 1, 2018. As of December 31, 2020, our IRSA covered $13,256,000, with a weighted average rate of 5.52%. As described in Note 8 – “Interest Rate Swaps,” on August 29, 2019 we entered into a second IRSA with CoBank covering an additional $42,000,000 of our aggregate indebtedness to CoBank at August 29, 2019. As of December 31, 2020, our IRSA covered $37,154,202, with a weighted average rate of 3.75%. Our remaining debt of $11.1 million ($10.0 million available under the revolving credit facilities and $1.1 million currently outstanding) remains subject to variable interest rates at an effective weighted average interest rate of 2.65%, as of December 31, 2020. Our loan agreements include restrictions on our ability to pay cash dividends to our stockholders. However, we are allowed to pay dividends (a) (i) in an amount up to $2,700,000 in any year if our “Total Leverage Ratio,” that is, the ratio of our “Indebtedness” to “EBITDA” – as defined in the loan documents is greater than 2.00 to 1.00, and (ii) in any amount if our Total Leverage Ratio is less than 2.00 to 1.00, and (b) in either case, if we are not in default or potential default under the loan agreements. On December 31, 2020 our Total Leverage Ratio fell below 2.00, thus eliminating any restrictions on our ability to pay cash dividends to our stockholders. Our current Total Leverage Ratio at December 31, 2020 is 1.92. Our credit facility requires us to comply with specified financial ratios and tests. These financial ratios include total leverage ratio, debt service coverage ratio, equity to total assets ratio and annual maximum aggregate capital expenditures. At December 31, 2020, we were in compliance with all the stipulated financial ratios in the loan agreements. There are security and loan agreements underlying our current CoBank credit facility that contain restrictions on our distributions to stockholders and investment in, or loans, to others. Also, our credit facility contains restrictions that, among other things, limits or restricts our ability to enter into guarantees and contingent liabilities, incur additional debt, issue stock, transact asset sales, transfers or dispositions, and engage in mergers and acquisitions, without CoBank approval. On April 16, 2020, Nuvera received a $2,889,000 loan under the SBA’s PPP, which was established as part of the Coronavirus Aid, Relief Economic Security Act, or CARES Act. The PPP Loan is unsecured and is evidenced by a note in the favor of Citizens as the lender. The interest rate on the Note is 1.0% per annum. Payments of principal and interest are deferred for 180 days from the date of the Note (the deferral period). The PPP provides a mechanism for forgiveness of up to the full amount borrowed as long as Nuvera uses the loan proceeds during the 24-week period after the loan origination for eligible purposes, including U.S. payroll costs, certain benefit costs, rent and utilities costs, and maintains its employment and compensation levels, subject to certain other requirements and limitations. The amount of the loan forgiveness is subject to reduction, among other things, if Nuvera terminates employees or reduces salaries or wages during the 24-week period. Any unforgiven portion of the PPP Loan is payable over a two-year term, with payments deferred during the deferral period. Nuvera is permitted to prepay the Note at any time without payment of any premium. The Note contains customary events of material defaults, including, among others, those relating to failure to make a payment, bankruptcy, other indebtedness, breaches of representations, and material adverse changes. The Company has adhered to all guidelines under the terms of the Note and applied for debt forgiveness in August, 2020. See Note 20 – “Subsequent Events” for information regarding PPP loan forgiveness. Long-term debt is as follows: 2020 2019 Secured seven-year credit facility to CoBank, ACB, amortizing in quarterly installments of $1,152,600 (beginning on September 30, 2018), plus a notional variable rate of interest through July 31, 2025. $ 51,512,585 $ 56,134,400 Secured seven-year revolving credit facility of up to $10,000,000 to CoBank, ACB, plus a notional variable rate of interest through July 31, 2025. - - Unsecured two-year SBA PPP Loan of $2,889,000 at 1% per annum from Citizens Bank Minnesota received April 16, 2020. Payments are deferred until November 16, 2020 or until the SBA rules on Loan Forgiveness, whichever is later. 2,889,000 - Less: Unamortized Loan Fees (451,714) (550,270) 53,949,871 55,584,130 Less: Amount due within one year (6,886,986) (4,610,400) Less: Current Portion of Unamortized Loan Fees (98,556) (98,556) Total Long Term Debt $ 47,161,441 $ 51,072,286 Required principal payments for the next five years are as follows: 2021 $ 6,886,986 2022 $ 5,222,814 2023 $ 4,610,400 2024 $ 4,610,400 2025 $ 33,070,985 |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Financial Instruments Disclosure [Text Block] | NOTE 8 – INTEREST RATE SWAPS We assess interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. We generally use variable-rate debt to finance our operations, capital expenditures and acquisitions. These variable-rate debt obligations expose us to variability in interest payments due to changes in interest rates. The terms of our credit facility with CoBank required that we enter into interest rate agreements designed to protect us against fluctuations in interest rates, in an aggregate principal amount and for a duration determined under the credit facility. To meet this objective, we have entered into an IRSA with CoBank covering 25 percent of our existing outstanding debt balance or $16,137,500 of our aggregate indebtedness to CoBank at August 1, 2018. The swap effectively locked in the interest rate on 25 percent of our variable-rate debt through July 2025. Under this IRSA, we have changed the variable-rate cash flow exposure on the debt obligations to fixed cash flows. Under the terms of the IRSA, we pay a fixed contractual interest rate and (i) make an additional payment if the LIBOR variable rate payment is below a contractual rate or (ii) receive a payment if the LIBOR variable rate payment is above the contractual rate. On August 29, 2019 we entered into a second IRSA with CoBank covering an additional $42,000,000 of our aggregate indebtedness to CoBank at August 29, 2019. The swap effectively locked in a significant portion of our variable-rate debt through July 2025. Under this IRSA, we have changed the variable rate cash flow exposure on the debt obligations to fixed cash flows. Under the terms of the IRSA, we pay a fixed contractual interest rate and (i) make an additional payment if the LIBOR variable rate payment is below a contractual rate or (ii) receive a payment if the LIBOR variable rate payment is above the contractual rate. Each month, we make interest payments to CoBank under its loan agreements based on the current applicable LIBOR Rate plus the contractual LIBOR margin then in effect with respect to the loan, without reflecting our IRSAs. At the end of each calendar month, CoBank adjusts our aggregate interest payments based on the difference, if any, between the amounts paid by us during the month and the current effective interest rate. Net interest payments are reported in our consolidated income statement as interest expense. As of December 31, 2020 we had the following IRSA in effect. Loan # Maturity Date Notional Amount Current Effective Interest Rate (1) RX0583-T4 07/31/2025 $13,256,000 5.52% (LIBOR Rate of 3.02% plus 2.50% LIBOR Margin) RX0583-T4 07/31/2025 $37,154,202 3.75% (LIBOR Rate of 1.25% plus 2.50% LIBOR Margin) (1) As described in Note 7 – “Long-Term Debt,” the notes above initially bears interest at a LIBOR rate determined by the maturity of the note, plus a “LIBOR Margin” rate equal to a maximum of 3.25% according to the individual secured credit facility. The LIBOR Margin decreases as the borrower’s “Leverage Ratio” decreases. The “Current Effective Interest Rate” in the table reflects the rate we pay giving effect to the swaps. Our IRSAs under our credit facilities both qualify as a cash flow hedges for accounting purposes under GAAP. We reflect the effect of these hedging transactions in the financial statements. The unrealized gain/loss is reported in other comprehensive income. If we terminate our IRSAs, the cumulative change in fair value at the date of termination would be reclassified from accumulated other comprehensive income, which is classified in stockholders’ equity, into earnings on the consolidated statements of income. The fair value of the Company’s IRSAs were determined based on valuations received from CoBank and were based on the present value of expected future cash flows using discount rates appropriate with the terms of the IRSAs. The fair value indicates an estimated amount we would be required to pay if the contracts were canceled or transferred to other parties. At December 31, 2020, the fair value liability of these swaps were $2,721,118, which has been recorded net of deferred tax benefit of $776,607, resulting in the $1,944,511 in accumulated other comprehensive loss. At December 31, 2019, the fair value liability of these swaps were $260,418, which has been recorded net of deferred tax benefit of $74,323, resulting in the $186,095 in accumulated other comprehensive loss. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 9 - INCOME TAXES Income taxes recorded in our consolidated statements of income consists of the following: 2020 2019 Taxes currently payable Federal $ 1,610,924 $ 1,899,170 State 1,229,752 1,122,935 Deferred Income Taxes 1,220,637 287,362 Total Income Tax Expense $ 4,061,313 $ 3,309,467 We account for income taxes in accordance with GAAP, which requires an asset and liability approach to financial accounting and reporting for income taxes. As required by GAAP, we recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. As of December 31, 2020 we had $44,155 of unrecognized tax benefits that if recognized, none would affect the tax rate. As of December 31, 2019 we had no unrecognized tax benefits. We do not expect the total amount of unrecognized tax benefits to materially change over the next 12 months. A reconciliation of the beginning and ending amount of total unrecognized benefits for the years ended December 31, 2020 and 2019 are as follows: 2020 2019 Balance, beginning of year $ - $ - Increases related to prior year tax positions 44,155 - Decreases related to prior year tax positions - - Increases related to current year tax positions - - Settlements - - Balance, end of year $ 44,155 $ - We are primarily subject to United States, Minnesota, Iowa, Nebraska, North Dakota and Wisconsin income taxes. Tax years subsequent to 2016 remain open to examination by federal and state tax authorities. Our policy is to recognize interest and penalties related to income tax matters as income tax expense. As of December 31, 2020 and 2019 we had $3,208 and $0 accrued interest that related to income tax matters. The differences between the statutory federal tax rate and the effective tax rate were as follows: 2020 2019 Statutory Tax Rate 21.00 % 21.00 % Effect of: State Income Taxes Net of Federal Tax Benefit 8.79 8.43 Permanent Differences and Other, Net (0.57) (1.00) Effective tax rate 29.22 % 28.43 % Deferred income taxes and unrecognized tax benefits reflected in our consolidated balance sheets are summarized as follows: 2020 2019 Deferred Tax Assets Accrued Expenses $ (465,304) $ (549,280) Deferred Compensation (263,355) (305,739) Other (131,291) (100,233) Unrealized Loss on SWAP (776,730) (74,335) State NOL (52,854) (249,531) Leases (353,043) (445,889) Total Deferred Tax Assets (2,042,577) (1,725,007) Deferred Tax Liabilities Fixed Assets 12,306,391 10,766,047 Intangible Assets 5,049,532 5,974,142 Investments 1,208,856 959,779 Contract Assets 120,331 50,324 Leases 345,876 444,770 Total Deferred Tax Liabilities: 19,030,986 18,195,062 Total Net Deferred Taxes $ 16,988,409 $ 16,470,055 |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Benefits [Text Block] | NOTE 10 - RETIREMENT PLAN We have a 401(k) employee savings plan in effect for employees who meet age and service requirements. Our contributions to our 401(k) employee savings plan were $378,032 and $692,655 in 2020 and 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 11 – COMMITMENTS AND CONTINGENCIES We are involved in certain contractual disputes in the ordinary course of business. We do not believe the ultimate resolution of any of these existing matters will have a material adverse effect on our financial position, results of operations or cash flows. We did not experience any changes to material contractual obligations in the year ended December 31, 2020. Our capital budget for 2021 is approximately $18.2 million and will be financed through internally generated funds and our line of credit. |
NONCASH INVESTING ACTIVITIES
NONCASH INVESTING ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
Noncash Investing [Abstract] | |
Noncash Investing [Text Block] | NOTE 12 - NONCASH INVESTING ACTIVITIES Noncash investing activities included $112,196 and $225,548 during the years ended December 31, 2020 and 2019. These activities related to plant and equipment additions placed in service and are recorded in our accounts payable at year-end. |
OTHER INVESTMENTS
OTHER INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Other Investments [Abstract] | |
Other Investments Text Block | NOTE 13 – OTHER INVESTMENTS We are a co-investor with other communication companies in several partnerships and limited liability companies. These joint ventures make it possible to offer services to customers, including digital video services and fiber transport services that we would have difficulty offering on our own. These joint ventures also make it possible to invest in new technologies with a lower level of financial risk. We recognize income and losses from these investments on the equity method of accounting. For a listing of our investments, see Note 17 – “Segment Information.” The FASB requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. As of December 31, 2020 we recorded a gain on one of our investments of $47,640. As of December 31, 2019, we recorded a loss on one of our investments of $104,044. |
GUARANTEES
GUARANTEES | 12 Months Ended |
Dec. 31, 2020 | |
Guarantees [Abstract] | |
Guarantees [Text Block] | NOTE 14 - GUARANTEES Nuvera has guaranteed a portion of a ten-year loan owed by FiberComm, LC set to mature on April 30, 2026. As of December 31, 2020, we have recorded a liability of $273,805 in connection with the guarantee on this loan. This guarantee may be exercised if FiberComm, LC does not make its required payments on this note. |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 15 – DEFERRED COMPENSATION As of December 31, 2020 and 2019, we have recorded other deferred compensation relating to executive compensation payable to certain former executives of the Company and certain former executives of past acquisitions. |
RESTRICTED STOCK UNITS
RESTRICTED STOCK UNITS | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Stock Unit [Abstract] | |
Restricted Stock Unit Text Block | NOTE 16 – RESTRICTED STOCK UNITS Our BOD adopted the 2017 Omnibus Stock Plan effective May 25, 2017. The shareholders of the Company approved the Plan at the May 25, 2017 Annual Meeting of Shareholders. The Plan enables the Company to grant stock incentive awards to current and new employees, including officers, and to Board members and service providers. The Plan permits stock incentive awards in the form of options (incentive and non-qualified), stock appreciation rights, restricted stock, RSUs, performance stock, performance units, and other awards in stock or cash. The Plan permits the issuance of up to 625,000 shares of our Common Stock in any of the above stock awards. As of March 16, 2021, 569,392 shares remain available to be issued under the Plan. Starting in 2017 and each subsequent year following 2017, our BOD and Compensation Committee granted awards to the Company’s executive officers under the Plan. We recognize share-based compensation expense for these RSUs over the vesting period of the RSUs which is determined by our BOD. Forfeitures of RSU’s are accounted for as they occur. Each executive officer received or may receive time-based RSUs and performance-based RSUs. The time-based RSUs are computed as a percentage of the executive officer’s base salary based on the closing price of Company common stock on a date set by the BOD, and will vest over a three-year period based on the executive officer being employed by the Company on the vesting date. The performance-based RSUs are also computed as a percentage of the executive officer’s base salary based on the closing price of Company common stock on a date set by the BOD, and will vest over a three-year period based on the Company attaining an average Return on Invested Capital (ROIC) over that three-year period. The ROIC target is set by the BOD. Executive officers may earn more or less performance-based RSU’s based on if the actual ROIC over the time period is more or less than target. Upon vesting of either time-based or performance-based RSUs, the executive officers will be able to receive Common Stock in the Company in exchange for the RSUs. RSUs currently issued and outstanding are as follows: Targeted Performance-Based RSU's Closing Stock Price Time-Based RSU's Vesting Date Balance at December 31, 2018 8,717 5,000 Issued 3,172 - $ 19.26 12/31/2021 Issued - 4,781 $ 19.26 12/31/2021 Issued 1,913 - $ 20.00 12/31/2022 Exercised (4,399) - $ 18.50 12/10/2019 Forfeited (1,024) - Balance at December 31, 2019 8,379 9,781 Issued 4,163 - $ 16.64 12/8/2022 Issued - 6,461 $ 16.64 12/31/2022 Exercised (2,062) (2,082) $ 19.00 12/31/2019 Exercised (1,588) - $ 19.44 12/11/2020 Forfeited (1,254) (4,549) Balance at December 31, 2020 7,638 9,611 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 17 – SEGMENT INFORMATION We operate in the Communications Segment and have no other significant business segments. The Communications Segment consists of voice, data and video communication services delivered to the customer over our local communications network. No single customer accounted for a material portion of our consolidated revenues in any of the last two years. The Communications Segment operates the following communications companies and has investment ownership interests as follows: Communications Segment ● Communications Companies: ▪ Nuvera Communications, Inc., the parent company; ▪ Hutchinson Telephone Company, a wholly-owned subsidiary of Nuvera; ▪ Peoples Telephone Company, a wholly-owned subsidiary of Nuvera; ▪ Scott-Rice Telephone Co., a wholly-owned subsidiary of Nuvera; ▪ Sleepy Eye Telephone Company, a wholly-owned subsidiary of Nuvera; ▪ Western Telephone Company, a wholly-owned subsidiary of Nuvera; and ▪ Hutchinson Telecommunications, Inc., a wholly-owned subsidiary of HTC, located in Litchfield and Glencoe, Minnesota; ● Our investments and interests in the following entities include some management responsibilities: ▪ FiberComm, LC – 20.00% subsidiary equity ownership interest. FiberComm, LC is located in Sioux City, Iowa; ▪ Broadband Visions, LLC – 24.30% subsidiary equity ownership interest. BBV provides video headend and Internet services; ▪ Independent Emergency Services, LLC – 14.29% subsidiary equity ownership interest. IES is a provider of E-911 services to the State of Minnesota as well as a number of counties located in Minnesota; and ▪ SM Broadband, LLC – 9.09% subsidiary equity ownership interest. SMB provides network connectivity for regional businesses. |
Broadband Grants
Broadband Grants | 12 Months Ended |
Dec. 31, 2020 | |
Broadband Grants [Abstract] | |
Broadband Grants [Text Block] | NOTE 18 – BROADBAND GRANTS In November 2017, the Company was awarded a broadband grant from the DEED. The grant provided up to 42.6% of the total cost of building fiber connections to homes and businesses for improved high-speed internet in unserved or underserved communities and businesses in the Company’s service area. The Company was eligible to receive $736,598 of the $1,727,998 total project costs. The Company provided the remaining 57.4% matching funds. Construction and expenditures for these projects began in 2018. We have received $650,208 for these projects as of December 31, 2020. In January 2020, the Company was awarded a broadband grant from DEED. The grant will provide up to 36.5% of the total cost of building fiber connections to homes and businesses for improved high-speed internet in unserved or underserved communities and businesses in the Company’s service area. The Company is eligible to receive $730,000 of approximately $2,000,000 total project costs. The Company will provide the remaining 63.5% matching funds. Construction and expenditures for these projects began in the spring of 2020. We have not received any funds for these projects as of December 31, 2020. |
TRANSACTIONS WITH EQUITY METHOD
TRANSACTIONS WITH EQUITY METHOD INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Note 19 – Transactions with equity method investments We receive and provide services to various partnerships and limited liability companies where we are an investor. Services received include digital video, special access and communications circuits. Services provided include BOD meeting attendance, labor, Internet help desk services and management services. Cost of services we receive from affiliated parties may not be the same as the costs of such services had they been obtained from different parties. Total revenues from transactions with affiliates were $896,546 and $1,028,636 for 2020 and 2019. Total expenses from transactions with affiliates were $553,271 and $519,953 for 2020 and 2019. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 20 -- SUBSEQUENT EVENTS Nuvera’s BOD has declared a regular quarterly dividend on our common stock of $.13 per share, payable on March 15, 2021 to stockholders of record at the close of business on March 5, 2021. On February 2, 2021, the Company was notified by Citizens, the lender on the Company’s PPP Loan, that Citizens had received payment in full from the United States federal government for the amount of the Company’s PPP Loan and the Company’s PPP Loan had been fully forgiven. On January 29, 2021, the Company was awarded five broadband grants from the DEED. The grants will provide up to 35.4% of the total cost of building fiber connections to homes and businesses for improved high-speed internet in unserved or underserved communities and businesses in the Company’s service area. The Company is eligible to receive $1,918,037 of the approximately $5,419,617 total project costs. The Company will provide the remaining 64.6% matching funds. Construction and expenditures for these projects will begin in the spring of 2021. We have evaluated and disclosed subsequent events through the filing date of this Annual Report on Form 10-K. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Description Of Business Policy [Text Block] | Description of Business Nuvera is a diversified communications company headquartered in New Ulm, Minnesota with more than 115 years of experience in the communications business. Our principal line of business is the operation of seven communications companies. Our businesses consist of connecting customers to our state-of-the-art, fiber-rich communications network, providing managed services, switched service and dedicated private lines, connecting customers to long distance service providers and providing many other services associated with our company. We also provide IPTV, CATV, Internet access services, including high-speed broadband access, and long distance service. We also install and maintain communications systems to the areas in and around our service territories in southern Minnesota and northern Iowa. |
Basis Of Presentation And Principles Of Consolidation [Policy Text Block] | Basis of Presentation and Principles of Consolidation Our accounting policies conform with GAAP and rules and regulations of the SEC and, where applicable, conform to the accounting principles as prescribed by federal and state telephone utility regulatory authorities. We presently give accounting recognition to the actions of regulators where appropriate in preparing general purpose financial statements for most public utilities. In general, the type of regulation covered by this statement permits rates (prices) for some services to be set at levels intended to recover the estimated costs of providing regulated services or products, including the cost of capital (interest costs and a provision for earnings on stockholders’ investments). Our consolidated financial statements report the financial condition and results of operations for Nuvera and its subsidiaries in one business segment: the Communications Segment. Inter-company transactions have been eliminated from the consolidated financial statements. |
Classification Of Costs And Expenses [Policy Text Block] | Classification of Costs and Expenses Cost of services includes all costs related to delivery of communication services and products. These operating costs include all costs of performing services and providing related products including engineering, network monitoring and transportation costs. Selling, general and administrative expenses include direct and indirect selling expenses, customer service, billing and collections, advertising and all other general and administrative costs associated with our operations. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires our management to make estimates and judgements that affect the reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and liabilities. The estimates and judgements used in the accompanying consolidated financial statements are based on our management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from those estimates and assumptions. |
Revenue [Policy Text Block] | Revenue Recognition See Note 2 – “Revenue Recognition” for a discussion of our revenue recognition policies. |
Receivable [Policy Text Block] | Receivables As of December 31, 2020 and 2019, our consolidated receivables totaled $1,885,196 and $2,356,742, net of the allowance for doubtful accounts. We believe our receivables as of December 31, 2020 and 2019 are recorded at their fair value. As there may be exposure or risk with receivables, we routinely monitor our receivables and adjust the allowance for doubtful accounts when events occur that may potentially affect the collection of our receivables. |
Allowance For Doubtful Accounts [Policy Text Block] | Allowance for Doubtful Accounts We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. In making the determination of the appropriate allowance for doubtful accounts, we consider specific accounts, historical write-offs, changes in customer relationships, credit worthiness and concentrations of credit risk. Specific accounts receivable are written off once a determination is made that the account is uncollectible. Additional allowances may be required if the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments. The activity in our allowance for doubtful accounts includes the following: Year Ended December 31 2020 2019 Balance at beginning of year $ 120,000 $ 113,000 Additions charged to costs and expenses 185,251 255,491 Accounts written off, net of recoveries (145,251) (248,491) Balance at end of year $ 160,000 $ 120,000 |
Inventory, Policy [Policy Text Block] | Inventories Inventory includes parts, materials and supplies stored in our warehouses to support basic levels of service and maintenance as well as scheduled capital projects and equipment awaiting configuration for customers. Inventory also includes (i) parts and equipment shipped directly from vendors to customer locations while in transit and (ii) parts and equipment returned from customers that are being returned to vendors for credit. Our inventory value as of December 31, 2020 and 2019 was $2,965,960 and $2,827,159. We value inventory using the lower of cost or net realizable value. Similar to our allowance for doubtful accounts, we make estimates related to the valuation of inventory. As of December 31, 2020 and 2019, we had no inventory reserve. We adjust our inventory carrying value for estimated obsolescence or unmarketable inventory to the net realizable value based upon assumptions about future demand and market conditions. As market and other conditions change, we may establish additional inventory reserves at a time when the facts that give rise to a lower value are warranted. We use the first-in, first-out method of inventory costing for our non-retail inventory. We use the average cost method of inventory costing for our retail inventory. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment We record impairment losses on long-lived assets used in operations when events and circumstances indicate the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. In assessing the recoverability of long-lived assets, we compare the carrying value to the undiscounted future cash flows the assets are expected to generate. If the total of the undiscounted future cash flows is less than the carrying amount of the assets, we would write down those assets based on the excess of the carrying amount over the fair value of the assets. Fair value is generally determined by calculating the discounted future cash flows expected from those assets. Changes in these estimates could have a material adverse effect on the assessment of long-lived assets, thereby requiring a write-down of the assets. Write-downs of long-lived assets are recorded as impairment charges and are a component of operating expenses. We have reviewed our long-lived assets and concluded that no impairment charge on our long-lived assets is necessary. We use the group life method (mass asset accounting) to depreciate the assets of our communications companies. Communications plant acquired in a given year is grouped into similar categories and depreciated over the remaining estimated useful life of the group. When an asset is retired, both the asset and the accumulated depreciation associated with that asset are removed from the books. Due to rapid changes in technology, selecting the estimated economic life of communications plant and equipment requires a significant amount of judgment. We periodically review data on expected utilization of new equipment, asset retirement activity and net salvage values to determine adjustments to our depreciation rates. We have not made any significant changes to the lives of these assets in the two year period ended December 31, 2020. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets We amortize our definite-lived intangible assets over their estimated useful lives. Customer relationships are amortized over fourteen to fifteen years, regulatory rights are amortized over fifteen years and trade names are amortized over three to five years. Intangible assets with finite lives are amortized over their respective estimated useful lives. In accordance with GAAP, goodwill and intangible assets with indefinite useful lives are not amortized, but tested for impairment at least annually. See Note 6 – “Goodwill and Intangibles” for a more detailed discussion of the intangible assets and goodwill. Our goodwill balance was $49,903,029 as of December 31, 2020 and 2019. In the fourth quarter of 2020 and 2019 we completed our annual impairment tests for existing acquired goodwill. This testing resulted in no impairment charges to goodwill at December 31, 2020 and 2019. |
Investments And Other Assets [Policy Text Block] | Investments and Other Assets We are a co-investor with other communication companies in several partnerships and limited liability companies. These joint ventures make it possible to offer services to customers, including digital video services and fiber transport services that we would have difficulty offering on our own. These joint ventures also make it possible to invest in new technologies with a lower level of financial risk. We use the equity method of accounting for these investments that reflects original cost and recognition of our share of the net income or losses from the respective operations. See Note 17 – “Segment Information” for a listing of our investments. Investments in other companies that are not intended for resale and are not accounted for on the equity method of accounting are valued at fair value where there are readily determinable fair values. Investments in other companies that are not intended for resale and are not accounted for on the equity method of accounting are valued at cost where there are no readily determinable fair values. See Note 13 – “Other Investments” for additional information regarding our investments. |
Advertising Cost [Policy Text Block] | Advertising Expense Advertising is expensed as incurred. Advertising expense charged to operations was $515,976 and $364,932 in 2020 and 2019. |
Interest During Construction [Policy Text Block] | Interest During Construction We include an average cost of debt for the construction of plant in our communications plant accounts. |
Income Tax, Policy [Policy Text Block] | Income Taxes We account for income taxes in accordance with GAAP, which requires an asset and liability approach to financial accounting and reporting for income taxes. Accordingly, deferred tax assets and liabilities arise from the difference between the tax basis of an asset or liability and its reported amount in the financial statements and operating and tax credit carryforwards. Deferred tax assets and liabilities are determined using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. We recognize interest and penalties related to income tax matters as income tax expense. Income tax expense or benefit is the tax payable or refundable, respectively, for the period plus or minus the change in deferred tax assets and liabilities during the period. GAAP requires us to recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. See Note 9 – “Income Taxes” for additional information regarding income taxes. |
Collection Of Taxes From Customers [Policy Text Block] | Collection of Taxes from Customers Sales, excise and other taxes are imposed on most of our sales to nonexempt customers. We collect these taxes from our customers and remit the entire amounts to governmental authorities. Our accounting policies dictate that we exclude these taxes collected and remitted from our revenues and expenses. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments and receivables. We deposit our cash investments in high credit quality financial institutions accounts which, at times, may exceed federally insured limits. We have not experienced any losses in these accounts and do not believe we are exposed to any significant credit risk. Concentrations of credit risk with respect to trade receivables are limited due to our large number of customers. |
Earnings And Dividends Per Share [Policy Text Block] | Earnings and Dividends Per Share Basic and diluted net income per share are calculated as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Basic Diluted Basic Diluted Net Income $ 9,835,812 $ 9,835,812 $ 8,329,979 $ 8,329,979 Weighted-average common 5,194,006 5,199,696 5,184,663 5,193,449 Net income per share $ 1.89 $ 1.89 $ 1.61 $ 1.60 The weighted-average shares outstanding, basic and diluted, are calculated as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Basic Diluted Basic Diluted Weighted-average common 5,194,006 5,194,006 5,184,663 5,184,663 Potentially Dilutive RSU's - 5,690 - 8,786 Weighted-average common 5,194,006 5,199,696 5,184,663 5,193,449 Nuvera’s BOD reviews quarterly dividend declarations based on our anticipated earnings, capital requirements and our operating and financial conditions. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Developments In March, 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU No. 2101-01, “Reference Rate Reform (Topic 848): Scope. ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2020-04 and ASU 2021-01 are both elective and are effective upon issuance through December 31, 2022. The Company is evaluating the impact this update will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The second step measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under ASU 2017-04, a company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 will be applied prospectively and is effective for annual or interim goodwill impairment tests in the fiscal years beginning January 1, 2021. Early adoption is permitted. The Company adopted ASU 2017-04 on January 1, 2021 and expects that adoption of the standard will not have a material effect on our financial position, results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosures relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. The Company is required to adopt ASU 2016-13 for fiscal periods beginning after December 15, 2022, including interim periods within that fiscal year. Early adoption as of December 15, 2018 is permitted. Management is evaluating the impact the adoption of ASU 2016-13 will have on the Company’s financial statements (if any). We have reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to us or that no material effect is expected on our financial position and results of operations. |
BUSINESS DESCRIPTION AND SUMM_2
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Financing Receivable, Current, Allowance for Credit Loss [Table Text Block] | Year Ended December 31 2020 2019 Balance at beginning of year $ 120,000 $ 113,000 Additions charged to costs and expenses 185,251 255,491 Accounts written off, net of recoveries (145,251) (248,491) Balance at end of year $ 160,000 $ 120,000 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2020 Year Ended December 31, 2019 Basic Diluted Basic Diluted Net Income $ 9,835,812 $ 9,835,812 $ 8,329,979 $ 8,329,979 Weighted-average common 5,194,006 5,199,696 5,184,663 5,193,449 Net income per share $ 1.89 $ 1.89 $ 1.61 $ 1.60 |
Schedule of Weighted Average Number of Shares [Table Text Block] | Year Ended December 31, 2020 Year Ended December 31, 2019 Basic Diluted Basic Diluted Weighted-average common 5,194,006 5,194,006 5,184,663 5,184,663 Potentially Dilutive RSU's - 5,690 - 8,786 Weighted-average common 5,194,006 5,199,696 5,184,663 5,193,449 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Twelve Months Ended December 31, 2020 2019 Voice services¹ $ 7,594,617 8,107,290 Network access¹ 6,229,549 7,761,786 Video ¹ 12,215,923 12,070,242 Data ¹ 21,416,969 19,859,051 Directory² 794,552 827,978 Other contracted revenue³ 2,403,107 2,355,790 Other 4 1,292,700 979,076 Revenue from customers 51,947,417 51,961,213 Subsidy and other revenue 5 12,963,654 12,980,128 Total revenue $ 64,911,071 $ 64,941,341 ¹ Month-to-Month contracts billed and consumed in the same month. ² Directory revenue is contracted annually, however, this revenue is recognized ³ This includes long-term contracts where the revenue is recognized monthly over 4 This includes CPE and other equipment sales. 5 This includes governmental subsidies and lease revenue outside the scope of ASC 606. |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Year Ended December 31, 2020 2019 Accounts receivable, net $ 1,142,476 $ 1,618,555 Contract assets 421,557 176,299 Contract liabilities 667,868 609,989 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block [Abstract] | |
ROU And Operating Lease Liabilities Table Text Block | Right of Use Asset Balance December 31, 2020 Balance December 31, 2019 Operating Lease right-of-use assets $ 1,211,707 $ 1,558,164 Operating Lease Liability Balance Balance December 31, 2019 Short-Term Operating Lease Liability $ 243,218 $ 415,949 Long-Term Operating Lease Liability 993,596 1,146,132 Total $ 1,236,814 $ 1,562,081 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity Analysis 2021 $ 311,200 2022 297,729 2023 297,515 2024 184,649 2025 67,140 Thereafter 365,064 Total 1,523,297 Less Imputed interest (286,483) Present Value of Operating Leases $ 1,236,814 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | 2020 2019 Communications Plant: Land $ 712,503 $ 712,503 Buildings 10,736,080 10,612,823 Other Support Assets 17,990,916 17,418,983 Central Office and Circuit Equipment 57,781,339 55,273,657 Cable and Wire Facilities 80,701,208 74,402,816 Other Plant and Equipment 404,883 404,883 Plant Under Construction 3,634,807 4,804,731 171,961,736 163,630,396 Other Property 25,758,591 23,301,293 Video Plant 11,143,951 10,732,919 Total Property, Plant and Equipment $ 208,864,278 $ 197,664,608 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2020 December 31, 2019 Gross Carrying Amount Gross Carrying Amount Useful Lives Accumulated Amortization Accumulated Amortization Definite-Lived Intangible Assets Customers Relationships 14-15 yrs $ 42,878,445 $ 25,811,014 $ 42,878,445 $ 22,815,928 Regulatory Rights 15 yrs 4,000,000 3,466,635 4,000,000 3,199,971 Trade Name 3-5 yrs 310,106 149,423 880,106 657,402 Indefinitely-Lived Intangible Assets Video Franchise 3,000,000 - 3,000,000 - Spectrum 877,814 - - - Total $ 51,066,365 $ 29,427,072 $ 50,758,551 $ 26,673,301 Net Identified Intangible Assets $ 21,639,293 $ 24,085,250 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2021 $ 3,323,726 2022 $ 1,952,376 2023 $ 1,660,295 2024 $ 1,623,654 2025 $ 1,618,732 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt is as follows: 2020 2019 Secured seven-year credit facility to CoBank, ACB, amortizing in quarterly installments of $1,152,600 (beginning on September 30, 2018), plus a notional variable rate of interest through July 31, 2025. $ 51,512,585 $ 56,134,400 Secured seven-year revolving credit facility of up to $10,000,000 to CoBank, ACB, plus a notional variable rate of interest through July 31, 2025. - - Unsecured two-year SBA PPP Loan of $2,889,000 at 1% per annum from Citizens Bank Minnesota received April 16, 2020. Payments are deferred until November 16, 2020 or until the SBA rules on Loan Forgiveness, whichever is later. 2,889,000 - Less: Unamortized Loan Fees (451,714) (550,270) 53,949,871 55,584,130 Less: Amount due within one year (6,886,986) (4,610,400) Less: Current Portion of Unamortized Loan Fees (98,556) (98,556) Total Long Term Debt $ 47,161,441 $ 51,072,286 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2021 $ 6,886,986 2022 $ 5,222,814 2023 $ 4,610,400 2024 $ 4,610,400 2025 $ 33,070,985 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2020 2019 Taxes currently payable Federal $ 1,610,924 $ 1,899,170 State 1,229,752 1,122,935 Deferred Income Taxes 1,220,637 287,362 Total Income Tax Expense $ 4,061,313 $ 3,309,467 |
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward [Table Text Block] | 2020 2019 Balance, beginning of year $ - $ - Increases related to prior year tax positions 44,155 - Decreases related to prior year tax positions - - Increases related to current year tax positions - - Settlements - - Balance, end of year $ 44,155 $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2020 2019 Statutory Tax Rate 21.00 % 21.00 % Effect of: State Income Taxes Net of Federal Tax Benefit 8.79 8.43 Permanent Differences and Other, Net (0.57) (1.00) Effective tax rate 29.22 % 28.43 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2020 2019 Deferred Tax Assets Accrued Expenses $ (465,304) $ (549,280) Deferred Compensation (263,355) (305,739) Other (131,291) (100,233) Unrealized Loss on SWAP (776,730) (74,335) State NOL (52,854) (249,531) Leases (353,043) (445,889) Total Deferred Tax Assets (2,042,577) (1,725,007) Deferred Tax Liabilities Fixed Assets 12,306,391 10,766,047 Intangible Assets 5,049,532 5,974,142 Investments 1,208,856 959,779 Contract Assets 120,331 50,324 Leases 345,876 444,770 Total Deferred Tax Liabilities: 19,030,986 18,195,062 Total Net Deferred Taxes $ 16,988,409 $ 16,470,055 |
RESTRICTED STOCK UNITS (Tables)
RESTRICTED STOCK UNITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Stock Unit [Abstract] | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Targeted Performance-Based RSU's Closing Stock Price Time-Based RSU's Vesting Date Balance at December 31, 2018 8,717 5,000 Issued 3,172 - $ 19.26 12/31/2021 Issued - 4,781 $ 19.26 12/31/2021 Issued 1,913 - $ 20.00 12/31/2022 Exercised (4,399) - $ 18.50 12/10/2019 Forfeited (1,024) - Balance at December 31, 2019 8,379 9,781 Issued 4,163 - $ 16.64 12/8/2022 Issued - 6,461 $ 16.64 12/31/2022 Exercised (2,062) (2,082) $ 19.00 12/31/2019 Exercised (1,588) - $ 19.44 12/11/2020 Forfeited (1,254) (4,549) Balance at December 31, 2020 7,638 9,611 |
BUSINESS DESCRIPTION AND SUMM_3
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Number of Reportable Segments | 1 | |
Accounts Receivable, after Allowance for Credit Loss, Current | $ 1,885,196 | $ 2,356,742 |
Inventory, Net | 2,965,960 | 2,827,159 |
Goodwill | 49,903,029 | 49,903,029 |
Advertising Expense | $ 515,976 | $ 364,932 |
Customer Relationships [Member] | Minimum [Member] | ||
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 14 years | |
Customer Relationships [Member] | Maximum [Member] | ||
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Regulatory Rights [Member] | ||
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Trade Names [Member] | Minimum [Member] | ||
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Trade Names [Member] | Maximum [Member] | ||
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years |
BUSINESS DESCRIPTION AND SUMM_4
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Allowance for doubtful accounts - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts [Abstract] | ||
Balance at beginning of year | $ 120,000 | $ 113,000 |
Additions charged to costs and expenses | 185,251 | 255,491 |
Accounts written off, net of recoveries | (145,251) | (248,491) |
Balance at end of year | $ 160,000 | $ 120,000 |
BUSINESS DESCRIPTION AND SUMM_5
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Basic and diluted net income per share - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Basic and diluted net income per share [Abstract] | ||
Net Income, Basic | $ 9,835,812 | $ 8,329,979 |
Net Income, Diluted | $ 9,835,812 | $ 8,329,979 |
Weighted-average common shares outstanding, Basic | 5,194,006 | 5,184,663 |
Weighted-average common shares outstanding, Diluted | 5,199,696 | 5,193,449 |
Net income per share, Basic | $ 1.89 | $ 1.61 |
Net income per share, Diluted | $ 1.89 | $ 1.60 |
BUSINESS DESCRIPTION AND SUMM_6
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - The weighted-average shares outstanding, basic and diluted - shares - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
The weighted-average shares outstanding, basic and diluted - shares [Abstract] | ||
Weighted-average common shares outstanding, Basic | 5,194,006 | 5,184,663 |
Potentially Dilutive RSU's | 5,690 | 8,786 |
Weighted-average common shares outstanding, Diluted | 5,199,696 | 5,193,449 |
REVENUE RECOGNITION (Details) -
REVENUE RECOGNITION (Details) - Disaggregation of Revenue | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Minimum [Member] | ||
REVENUE RECOGNITION (Details) - Disaggregation of Revenue [Line Items] | ||
Contract Term | 3 years | |
Maximum [Member] | ||
REVENUE RECOGNITION (Details) - Disaggregation of Revenue [Line Items] | ||
Contract Term | 10 years | |
Month To Month And Other Contracted Revenue [Member] | Revenue from Contract with Customer Benchmark [Member] | ||
REVENUE RECOGNITION (Details) - Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 78.04% | 78.50% |
Outside Of The Scope Of ASC 606 [Member] | Revenue from Contract with Customer Benchmark [Member] | ||
REVENUE RECOGNITION (Details) - Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 19.97% | 20.00% |
CPE And Equipment Sales And Installation [Member] | Revenue from Contract with Customer Benchmark [Member] | ||
REVENUE RECOGNITION (Details) - Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 1.99% | 1.50% |
REVENUE RECOGNITION (Details)_2
REVENUE RECOGNITION (Details) - Nature of Services | 12 Months Ended |
Dec. 31, 2020 | |
Voice Services [Member] | |
REVENUE RECOGNITION (Details) - Nature of Services [Line Items] | |
Revenue Recognition Period | 1 month |
Video [Member] | |
REVENUE RECOGNITION (Details) - Nature of Services [Line Items] | |
Revenue Recognition Period | 1 month |
Data [Member] | |
REVENUE RECOGNITION (Details) - Nature of Services [Line Items] | |
Revenue Recognition Period | 1 month |
Product and Service, Other [Member] | |
REVENUE RECOGNITION (Details) - Nature of Services [Line Items] | |
Revenue Recognition Period | 1 month |
Minimum [Member] | Other Contracted Revenue [Member] | |
REVENUE RECOGNITION (Details) - Nature of Services [Line Items] | |
Revenue Recognition Period | 3 years |
Maximum [Member] | Other Contracted Revenue [Member] | |
REVENUE RECOGNITION (Details) - Nature of Services [Line Items] | |
Revenue Recognition Period | 10 years |
REVENUE RECOGNITION (Details)_3
REVENUE RECOGNITION (Details) - A-CAM - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lowa Operations [Member] | ||
REVENUE RECOGNITION (Details) - A-CAM [Line Items] | ||
Construction Contractor, Receivable, Excluding Contract Retainage | $ 596,084 | |
Minnesota Operations [Member] | ||
REVENUE RECOGNITION (Details) - A-CAM [Line Items] | ||
Construction Contractor, Receivable, Excluding Contract Retainage | $ 8,354,481 | |
A-CAM [Member] | ||
REVENUE RECOGNITION (Details) - A-CAM [Line Items] | ||
Contract Receivable Period | 10 years | 10 years |
REVENUE RECOGNITION (Details)_4
REVENUE RECOGNITION (Details) - Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | |
REVENUE RECOGNITION (Details) - Accounts Receivable [Line Items] | |
Payment Term | 30 days |
Maximum [Member] | |
REVENUE RECOGNITION (Details) - Accounts Receivable [Line Items] | |
Payment Term | 60 days |
REVENUE RECOGNITION (Details)_5
REVENUE RECOGNITION (Details) - Contract Assets - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Professional and Contract Services Expense | $ 82,684 | $ 24,095 |
REVENUE RECOGNITION (Details)_6
REVENUE RECOGNITION (Details) - Contract Liabilities - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Deferred Revenue | $ 251,339 | $ 229,134 |
REVENUE RECOGNITION (Details)_7
REVENUE RECOGNITION (Details) - Revenue from contracts with customers - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | $ 51,947,417 | $ 51,961,213 |
Subsidy and other revenue outside scope of ASC 6065 | 12,963,654 | 12,980,128 |
Total revenue | 64,911,071 | 64,941,341 |
Voice Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | 7,594,617 | 8,107,290 |
Network Access [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | 6,229,549 | 7,761,786 |
Total revenue | 6,086,090 | 7,566,579 |
Video [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | 12,215,923 | 12,070,242 |
Total revenue | 12,224,574 | 12,081,824 |
Data [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | 21,416,969 | 19,859,051 |
Total revenue | 23,377,726 | 21,739,244 |
Directory [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | 794,552 | 827,978 |
Other Contracted Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | 2,403,107 | 2,355,790 |
Product and Service, Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | $ 1,292,700 | $ 979,076 |
REVENUE RECOGNITION (Details)_8
REVENUE RECOGNITION (Details) - Receivables, contracts assets and contract liabilities from revenue contracts with customers - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables, contracts assets and contract liabilities from revenue contracts with customers [Abstract] | ||
Accounts receivable, net | $ 1,142,476 | $ 1,618,555 |
Contract assets | 421,557 | 176,299 |
Contract liabilities | $ 667,868 | $ 609,989 |
LEASES (Details)
LEASES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | ||
Operating Lease, Expense | $ 521,846 | $ 428,680 |
LEASES (Details) - ROU and oper
LEASES (Details) - ROU and operating lease liabilities - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other Noncurrent Assets [Member] | ||
LEASES (Details) - ROU and operating lease liabilities [Line Items] | ||
Operating Lease right-of-use assets | $ 1,211,707 | $ 1,558,164 |
Other Current Liabilities [Member] | ||
LEASES (Details) - ROU and operating lease liabilities [Line Items] | ||
Short-Term Operating Lease Liability | 243,218 | 415,949 |
Other Noncurrent Liabilities [Member] | ||
LEASES (Details) - ROU and operating lease liabilities [Line Items] | ||
Long-Term Operating Lease Liability | 993,596 | 1,146,132 |
Other Liabilities [Member] | ||
LEASES (Details) - ROU and operating lease liabilities [Line Items] | ||
Total | $ 1,236,814 | $ 1,562,081 |
LEASES (Details) - Maturity ana
LEASES (Details) - Maturity analysis under these lease agreements - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
LEASES (Details) - Maturity analysis under these lease agreements [Line Items] | ||
2021 | $ 311,200 | |
2022 | 297,729 | |
2023 | 297,515 | |
2024 | 184,649 | |
2025 | 67,140 | |
Thereafter | 365,064 | |
Total | 1,523,297 | |
Less Imputed interest | (286,483) | |
Other Liabilities [Member] | ||
LEASES (Details) - Maturity analysis under these lease agreements [Line Items] | ||
Present Value of Operating Leases | $ 1,236,814 | $ 1,562,081 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items] | ||
Depreciation | $ 8,819,559 | $ 8,797,091 |
Other Property and Video [Member] | Minimum [Member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items] | ||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 4.30% | |
Property, Plant and Equipment, Useful Life | 3 years | |
Other Property and Video [Member] | Maximum [Member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items] | ||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 4.60% | |
Property, Plant and Equipment, Useful Life | 25 years |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT (Details) - Property, plant and equipment - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Communications Plant: | ||
Communications Plant | $ 171,961,736 | $ 163,630,396 |
Other Property | 25,758,591 | 23,301,293 |
Video Plant | 11,143,951 | 10,732,919 |
Total Property, Plant and Equipment | 208,864,278 | 197,664,608 |
Land [Member] | ||
Communications Plant: | ||
Communications Plant | 712,503 | 712,503 |
Building [Member] | ||
Communications Plant: | ||
Communications Plant | 10,736,080 | 10,612,823 |
Other Support Service [Member] | ||
Communications Plant: | ||
Communications Plant | 17,990,916 | 17,418,983 |
Central Office And Circuit Equipment [Member] | ||
Communications Plant: | ||
Communications Plant | 57,781,339 | 55,273,657 |
Cable and Wire Facilities [Member] | ||
Communications Plant: | ||
Communications Plant | 80,701,208 | 74,402,816 |
Other Plant and Equipment [Member] | ||
Communications Plant: | ||
Communications Plant | 404,883 | 404,883 |
Plant Under Construction [Member] | ||
Communications Plant: | ||
Communications Plant | $ 3,634,807 | $ 4,804,731 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 49,903,029 | $ 49,903,029 |
Amortization of Intangible Assets | $ 3,323,771 | $ 3,323,771 |
GOODWILL AND INTANGIBLES (Det_2
GOODWILL AND INTANGIBLES (Details) - Components of our identified intangible assets - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 51,066,365 | $ 50,758,551 |
Accumulated Amortization | 29,427,072 | 26,673,301 |
Net Identified Intangible Assets | 21,639,293 | 24,085,250 |
Customer Relationships [Member] | ||
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | 42,878,445 | 42,878,445 |
Accumulated Amortization | $ 25,811,014 | 22,815,928 |
Customer Relationships [Member] | Minimum [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 14 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 15 years | |
Regulatory Rights [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 15 years | |
Gross Carrying Amount | $ 4,000,000 | 4,000,000 |
Accumulated Amortization | 3,466,635 | 3,199,971 |
Trade Names [Member] | ||
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | 310,106 | 880,106 |
Accumulated Amortization | $ 149,423 | 657,402 |
Trade Names [Member] | Minimum [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 3 years | |
Trade Names [Member] | Maximum [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 5 years | |
Franchise Rights [Member] | ||
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 3,000,000 | $ 3,000,000 |
Spectrum [Member] | ||
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 877,814 |
GOODWILL AND INTANGIBLES (Det_3
GOODWILL AND INTANGIBLES (Details) - Summary of Future Amortization Expense | Dec. 31, 2020USD ($) |
Summary of Future Amortization Expense [Abstract] | |
2021 | $ 3,323,726 |
2022 | 1,952,376 |
2023 | 1,660,295 |
2024 | 1,623,654 |
2025 | $ 1,618,732 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | Apr. 16, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 29, 2019 | Aug. 01, 2018 | Jan. 01, 2018 |
LONG-TERM DEBT (Details) [Line Items] | ||||||
Proceeds from Issuance of Long-term Debt | $ 2,889,000 | |||||
Secured Debt [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Debt Instrument, Face Amount | 11,100,000 | |||||
Long-term Line of Credit | $ 1,100,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 2.65% | |||||
Debt Instrument, Covenant Description | Our loan agreements include restrictions on our ability to pay cash dividends to our stockholders. However, we are allowed to pay dividends (a) (i) in an amount up to $2,700,000 in any year if our “Total Leverage Ratio,” that is, the ratio of our “Indebtedness” to “EBITDA” – as defined in the loan documents is greater than 2.00 to 1.00, and (ii) in any amount if our Total Leverage Ratio is less than 2.00 to 1.00, and (b) in either case, if we are not in default or potential default under the loan agreements. | |||||
Debt Instrument Threshold Amount Dividends | $ 2,700,000 | |||||
Ratio of Indebtedness to Net Capital | 1.92 | |||||
Debt Instrument, Covenant Compliance | Our credit facility requires us to comply with specified financial ratios and tests. These financial ratios include total leverage ratio, debt service coverage ratio, equity to total assets ratio and annual maximum aggregate capital expenditures. | |||||
Secured Debt [Member] | RX0583(A)-T4 [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Debt Instrument, Face Amount | $ 64,550,000 | |||||
Secured Debt [Member] | RX0583(A)-T4 [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Debt Instrument, Periodic Payment, Principal | 1,152,600 | |||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 32,277,200 | |||||
Debt Instrument, Maturity Date | Jul. 31, 2025 | |||||
Secured Debt [Member] | RX0583(A)-T5 [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Debt Instrument, Maturity Date | Jul. 31, 2025 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | |||||
Long-term Line of Credit | 0 | |||||
Secured Debt [Member] | Revolving Credit Facility [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Line of Credit Facility, Current Borrowing Capacity | 10,000,000 | |||||
First IRSA With Co Bank [Member] | Interest Rate Swap [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Derivative, Notional Amount | $ 16,137,500 | |||||
First IRSA With Co Bank [Member] | Interest Rate Swap [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Derivative, Notional Amount | $ 16,137,500 | |||||
First IRSA With Co Bank [Member] | Interest Rate Swap Loan RX0583 T4 [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Derivative, Notional Amount | $ 13,256,000 | |||||
First IRSA With Co Bank [Member] | Secured Debt [Member] | Interest Rate Swap [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Debt, Weighted Average Interest Rate | 5.52% | |||||
Second IRSA Co Bank [Member] | Interest Rate Swap [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Derivative, Notional Amount | $ 42,000,000 | |||||
Second IRSA Co Bank [Member] | Interest Rate Swap [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Derivative, Notional Amount | $ 42,000,000 | |||||
Second IRSA Co Bank [Member] | Interest Rate Swap Loan RX0583 T4 [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Derivative, Notional Amount | $ 37,154,202 | |||||
Second IRSA Co Bank [Member] | Secured Debt [Member] | Interest Rate Swap [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Debt, Weighted Average Interest Rate | 3.75% | |||||
SBA’s PPP [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Debt, Weighted Average Interest Rate | 1.00% | |||||
Proceeds from Issuance of Long-term Debt | $ 2,889,000 | |||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% |
LONG-TERM DEBT (Details) - Long
LONG-TERM DEBT (Details) - Long-term debt - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Unsecured two-year SBA PPP Loan of $2,889,000 at 1% per annum from Citizens Bank Minnesota received April 16, 2020. Payments are deferred until November 16, 2020 or until the SBA rules on Loan Forgiveness, whichever is later. | $ 2,889,000 | |
Less: Unamortized Loan Fees | (451,714) | (550,270) |
Total Long Term Debt | 53,949,871 | 55,584,130 |
Less: Amount due within one year | (6,886,986) | (4,610,400) |
Less: Current Portion of Unamortized Loan Fees | (98,556) | (98,556) |
Total Long Term Debt | 47,161,441 | 51,072,286 |
Secured Debt [Member] | Seven Year Quarterly Installments 1152600 Through July 31 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 51,512,585 | 56,134,400 |
Secured Debt [Member] | Seven Year Revolving Credit Facility Of Up To 10000000 Through July 31 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt |
LONG-TERM DEBT (Details) - Lo_2
LONG-TERM DEBT (Details) - Long-term debt (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Secured Debt [Member] | Seven Year Quarterly Installments 1152600 Through July 31 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly Installments | $ 1,152,600 | $ 1,152,600 |
Secured Debt [Member] | Seven Year Revolving Credit Facility Of Up To 10000000 Through July 31 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility | 10,000,000 | 10,000,000 |
SBA’s PPP [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
SBA PPP Loan | $ 2,889,000 | $ 2,889,000 |
Interest rate | 1.00% | 1.00% |
LONG-TERM DEBT (Details) - Requ
LONG-TERM DEBT (Details) - Required principal payments | Dec. 31, 2020USD ($) |
Required principal payments [Abstract] | |
2021 | $ 6,886,986 |
2022 | 5,222,814 |
2023 | 4,610,400 |
2024 | 4,610,400 |
2025 | $ 33,070,985 |
INTEREST RATE SWAPS (Details)
INTEREST RATE SWAPS (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Aug. 29, 2019 | Jan. 01, 2018 | |
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative Liability, Noncurrent | $ 2,721,118 | $ 260,418 | ||
Deferred Income Tax Expense (Benefit) | 1,220,637 | 287,362 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,944,511) | (186,095) | ||
Interest Rate Swap [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative Liability, Noncurrent | 2,721,118 | 260,418 | ||
Deferred Income Tax Expense (Benefit) | 776,607 | 74,323 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1,944,511 | $ 186,095 | ||
First IRSA With Co Bank [Member] | Interest Rate Swap [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Notional Amount | $ 16,137,500 | |||
Derivative, Variable Interest Rate | 25.00% | |||
First IRSA With Co Bank [Member] | Interest Rate Swap Loan RX0583 T4 [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Notional Amount | $ 13,256,000 | |||
Derivative Instrument Maturity Date | Jul. 31, 2025 | |||
Derivative Instrument Interest Rate Effective Percentage Description | 5.52% (LIBOR Rate of 3.02% plus 2.50% LIBOR Margin) | |||
First IRSA With Co Bank [Member] | Secured Credit Facility [Member] | Interest Rate Swap [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Debt, Weighted Average Interest Rate | 5.52% | |||
Second IRSA Co Bank [Member] | Interest Rate Swap [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Notional Amount | $ 42,000,000 | |||
Second IRSA Co Bank [Member] | Interest Rate Swap Loan RX0583 T4 [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Notional Amount | $ 37,154,202 | |||
Derivative Instrument Maturity Date | Jul. 31, 2025 | |||
Derivative Instrument Interest Rate Effective Percentage Description | 3.75% (LIBOR Rate of 1.25% plus 2.50% LIBOR Margin) | |||
Second IRSA Co Bank [Member] | Secured Credit Facility [Member] | Interest Rate Swap [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Debt, Weighted Average Interest Rate | 3.75% | |||
Base Rate [Member] | First IRSA With Co Bank [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Variable Interest Rate | 3.02% | |||
Base Rate [Member] | Second IRSA Co Bank [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Variable Interest Rate | 1.25% | |||
London Interbank Offered Rate (LIBOR) [Member] | Secured Credit Facility [Member] | Maximum [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Variable Interest Rate | 3.25% | |||
London Interbank Offered Rate (LIBOR) [Member] | First IRSA With Co Bank [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Variable Interest Rate | 2.50% | |||
London Interbank Offered Rate (LIBOR) [Member] | Second IRSA Co Bank [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Variable Interest Rate | 2.50% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income Tax Examination Tax Positions Recognition Likelihood Threshold Percentage | 50.00% | ||
Unrecognized Tax Benefits | $ 44,155 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 3,208 | $ 0 |
INCOME TAXES (Details) - Income
INCOME TAXES (Details) - Income taxes recorded - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Taxes currently payable | ||
Federal | $ 1,610,924 | $ 1,899,170 |
State | 1,229,752 | 1,122,935 |
Deferred Income Taxes | 1,220,637 | 287,362 |
Total Income Tax Expense | $ 4,061,313 | $ 3,309,467 |
INCOME TAXES (Details) - A reco
INCOME TAXES (Details) - A reconciliation of the beginning and ending amount of total unrecognized benefits - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
A reconciliation of the beginning and ending amount of total unrecognized benefits [Abstract] | ||
Balance, beginning of year | ||
Increases related to prior year tax positions | 44,155 | |
Decreases related to prior year tax positions | ||
Increases related to current year tax positions | ||
Settlements | ||
Balance, end of year | $ 44,155 |
INCOME TAXES (Details) - The di
INCOME TAXES (Details) - The differences between the statutory federal tax rate and the effective tax rate | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
The differences between the statutory federal tax rate and the effective tax rate [Abstract] | ||
Statutory Tax Rate | 21.00% | 21.00% |
Effect of: | ||
State Income Taxes Net of Federal Tax Benefit | 8.79% | 8.43% |
Permanent Differences and Other, Net | (0.57%) | (1.00%) |
Effective tax rate | 29.22% | 28.43% |
INCOME TAXES (Details) - Deferr
INCOME TAXES (Details) - Deferred income taxes and unrecognized tax benefits - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets | ||
Accrued Expenses | $ (465,304) | $ (549,280) |
Deferred Compensation | (263,355) | (305,739) |
Other | (131,291) | (100,233) |
Unrealized Loss on SWAP | (776,730) | (74,335) |
State NOL | (52,854) | (249,531) |
Leases | (353,043) | (445,889) |
Total Deferred Tax Assets | (2,042,577) | (1,725,007) |
Deferred Tax Liabilities | ||
Fixed Assets | 12,306,391 | 10,766,047 |
Intangible Assets | 5,049,532 | 5,974,142 |
Investments | 1,208,856 | 959,779 |
Contract Assets | 120,331 | 50,324 |
Leases | 345,876 | 444,770 |
Total Deferred Tax Liabilities: | 19,030,986 | 18,195,062 |
Total Net Deferred Taxes | $ 16,988,409 | $ 16,470,055 |
RETIREMENT PLAN (Details)
RETIREMENT PLAN (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 378,032 | $ 692,655 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 31, 2021USD ($) |
Forecast [Member] | |
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |
Capital Budget | $ 18.2 |
NONCASH INVESTING ACTIVITIES (D
NONCASH INVESTING ACTIVITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Noncash Investing [Abstract] | ||
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | $ 112,196 | $ 225,548 |
OTHER INVESTMENTS (Details)
OTHER INVESTMENTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Investments [Abstract] | ||
Gain (Loss) on Sale of Other Investments | $ 47,640 | $ (104,044) |
GUARANTEES (Details)
GUARANTEES (Details) | Dec. 31, 2020USD ($) |
Guarantees [Abstract] | |
Guaranty Liabilities | $ 273,805 |
RESTRICTED STOCK UNITS (Details
RESTRICTED STOCK UNITS (Details) - 2017 Plan [Member] - Share-based Payment Arrangement, Option [Member] - shares | Mar. 16, 2021 | Dec. 31, 2020 |
RESTRICTED STOCK UNITS (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 625,000 | |
Subsequent Event [Member] | ||
RESTRICTED STOCK UNITS (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 569,392 |
RESTRICTED STOCK UNITS (Detai_2
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Exercised (in Dollars per share) | $ 18.50 | |
Exercised | Dec. 10, 2019 | |
Share-based Payment Arrangement, Tranche One [Member] | ||
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Issued (in Dollars per share) | $ 16.64 | $ 19.26 |
Issued | Dec. 8, 2022 | Dec. 31, 2021 |
Exercised (in Dollars per share) | $ 19 | |
Exercised | Dec. 31, 2019 | |
Share-based Payment Arrangement, Tranche Two [Member] | ||
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Issued (in Dollars per share) | $ 16.64 | $ 19.26 |
Issued | Dec. 31, 2022 | Dec. 31, 2021 |
Exercised (in Dollars per share) | $ 19.44 | |
Exercised | Dec. 11, 2020 | |
Share-based Payment Arrangement, Tranche Three [Member] | ||
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Issued (in Dollars per share) | $ 20 | |
Issued | Dec. 31, 2022 | |
Time Based RS Us [Member] | ||
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Balance | 8,379 | 8,717 |
Exercised | (4,399) | |
Forfeited | (1,254) | (1,024) |
Balance | 7,638 | 8,379 |
Time Based RS Us [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Issued | 4,163 | 3,172 |
Exercised | (2,062) | |
Time Based RS Us [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Exercised | (1,588) | |
Time Based RS Us [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Issued | 1,913 | |
Targeted Performance Based RS Us [Member] | ||
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Balance | 9,781 | 5,000 |
Forfeited | (4,549) | |
Balance | 9,611 | 9,781 |
Targeted Performance Based RS Us [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Exercised | (2,082) | |
Targeted Performance Based RS Us [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||
RESTRICTED STOCK UNITS (Details) - RSUs currently issued and outstanding [Line Items] | ||
Issued | 6,461 | 4,781 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | Dec. 31, 2020 |
Fiber Comm LC [Member] | |
SEGMENT INFORMATION (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 20.00% |
Broadband Visions LLC [Member] | |
SEGMENT INFORMATION (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 24.30% |
Independent Emergency Services LLC [Member] | |
SEGMENT INFORMATION (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 14.29% |
SM Broadband LLC [Member] | |
SEGMENT INFORMATION (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 9.09% |
Broadband Grants (Details)
Broadband Grants (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
November 2017 Grant [Member] | |
Broadband Grants (Details) [Line Items] | |
Grants Percentage | 42.60% |
Grants Receivable | $ 736,598 |
Project Cost | $ 1,727,998 |
MatchingFundPercentageProvidedByGrantee | 57.40% |
Proceeds from Grantors | $ 650,208 |
January 2020 Grant [Member] | |
Broadband Grants (Details) [Line Items] | |
Grants Percentage | 36.50% |
Grants Receivable | $ 730,000 |
Project Cost | $ 2,000,000 |
MatchingFundPercentageProvidedByGrantee | 63.50% |
TRANSACTIONS WITH EQUITY METH_2
TRANSACTIONS WITH EQUITY METHOD INVESTMENTS (Details) - Affiliated Entity [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
TRANSACTIONS WITH EQUITY METHOD INVESTMENTS (Details) [Line Items] | ||
Revenue from Related Parties | $ 896,546 | $ 1,028,636 |
Related Party Costs | $ 553,271 | $ 519,953 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - USD ($) | Jan. 29, 2021 | Mar. 15, 2021 |
SUBSEQUENT EVENTS (Details) [Line Items] | ||
Dividends Payable, Date to be Paid | Mar. 15, 2021 | |
Dividends Payable, Date of Record | Mar. 5, 2021 | |
Common Stock, Dividends, Per Share, Declared | $ 13 | |
January 2020 Grant [Member] | ||
SUBSEQUENT EVENTS (Details) [Line Items] | ||
Grants Percentage | 35.40% | |
Grants Receivable | $ 1,918,037 | |
Project Cost | $ 5,419,617 | |
MatchingFundPercentageProvidedByGrantee | 64.60% |