Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 16, 2023 | Jun. 30, 2022 | |
Document Information Line Items | |||
Entity Registrant Name | NUVERA COMMUNICATIONS, INC. | ||
Trading Symbol | NUVR | ||
Document Type | 10-K/A | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 5,093,213 | ||
Entity Public Float | $ 76,536,362 | ||
Amendment Flag | true | ||
Amendment Description | On March 16, 2023, Nuvera Communications, Inc. filed its Annual Report on Form 10-K for the year ended December 31, 2022. After filing, the Company discovered that the filing did not show a conformed opinion on the audited financial statements from the independent registered public accounting firm. The Company is filing this Amendment No. 1 to Form 10-K on Form 10-K/A to include the conformed signature, correct the location of Item 15 Exhibits and Financial Statements Schedule and the Signature page. The Company also has made a few substantive changes in this Amendment No. 1 to Form 10-K on Form 10-K/A to the original Form 10-K filing. | ||
Entity Central Index Key | 0000071557 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | 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 - $1.66 par value | ||
Auditor Name | Olsen Thielen & Co., Ltd | ||
Auditor Firm ID | 251 | ||
Auditor Location | Roseville, Minnesota |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING REVENUES: | ||
Operating Revenues | $ 65,714,469 | $ 65,837,521 |
OPERATING EXPENSES: | ||
Plant Operations (Excluding Depreciation and Amortization) | 14,383,362 | 13,387,146 |
Cost of Video | 10,042,132 | 10,386,013 |
Cost of Data | 4,118,439 | 3,642,114 |
Cost of Other Non-Regulated Services | 1,635,837 | 1,619,484 |
Depreciation and Amortization | 14,108,246 | 12,538,778 |
Selling, General, and Administrative | 9,916,482 | 10,377,186 |
Total Operating Expenses | 54,204,498 | 51,950,721 |
OPERATING INCOME | 11,509,971 | 13,886,800 |
OTHER INCOME (EXPENSE): | ||
Interest During Construction | 284,871 | 72,061 |
CoBank Patronage Dividends | 567,468 | 625,490 |
Interest/Dividend Income | 261,181 | 182,493 |
Interest Expense | (3,485,805) | (2,128,488) |
Gain on PPP Loan Forgiveness | 2,912,433 | |
Gain on Investments | 217,876 | |
Other Investment Income | 539,803 | 433,105 |
Total Other Income (Expense) | (1,614,606) | 2,097,094 |
INCOME BEFORE INCOME TAXES | 9,895,365 | 15,983,894 |
INCOME TAXES | 2,698,663 | 3,731,973 |
NET INCOME | $ 7,196,702 | $ 12,251,921 |
NET INCOME PER SHARE | ||
Basic (in Dollars per share) | $ 1.41 | $ 2.35 |
Diluted (in Dollars per share) | 1.41 | 2.35 |
DIVIDENDS PER SHARE (in Dollars per share) | $ 0.56 | $ 0.55 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||
Basic (in Shares) | 5,090,407 | 5,207,759 |
Diluted (in Shares) | 5,115,801 | 5,217,722 |
Voice Services [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | $ 5,694,428 | $ 6,175,847 |
Network Access [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | 4,759,084 | 5,652,372 |
Video Service [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | 12,497,458 | 12,597,289 |
Data Service [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | 27,028,332 | 25,495,739 |
ACAM-FUSF [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | 11,721,412 | 11,743,918 |
Other Non-Regulated [Member] | ||
OPERATING REVENUES: | ||
Operating Revenues | $ 4,013,755 | $ 4,172,356 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 7,196,702 | $ 12,251,921 |
OTHER COMPREHENSIVE INCOME | ||
Unrealized Gains on Interest Rate Swaps | 3,097,827 | 1,837,753 |
Income Tax Expense Related to Unrealized Gains on Interest Rate Swaps | (884,119) | (524,495) |
OTHER COMPREHENSIVE INCOME | 2,213,708 | 1,313,258 |
COMPREHENSIVE INCOME | $ 9,410,410 | $ 13,565,179 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash | $ 310,556 | $ 2,306,149 |
Receivables, Net of Allowance for Doubtful Accounts of $140,000 and $80,000 | 3,725,422 | 2,426,009 |
Income Taxes Receivable | 283,665 | 1,405,622 |
Materials, Supplies and Inventories | 23,617,800 | 5,357,380 |
Prepaid Expenses and Other Current Assets | 1,886,480 | 1,886,810 |
Total Current Assets | 29,823,923 | 13,381,970 |
INVESTMENTS & OTHER ASSETS: | ||
Goodwill | 49,903,029 | 49,903,029 |
Intangibles | 16,363,192 | 18,315,567 |
Other Investments | 11,016,246 | 10,417,563 |
Right of Use Asset | 1,341,029 | 1,154,293 |
Financial Derivative Instruments | 2,214,462 | |
Other Assets | 461,445 | 422,427 |
Total Investments and Other Assets | 81,299,403 | 80,212,879 |
PROPERTY, PLANT & EQUIPMENT: | ||
Communications Plant | 219,891,050 | 189,990,012 |
Other Property & Equipment | 29,836,775 | 27,439,201 |
Video Plant | 16,096,032 | 11,306,071 |
Total Property, Plant and Equipment | 265,823,857 | 228,735,284 |
Less Accumulated Depreciation | 159,632,293 | 147,585,930 |
Net Property, Plant & Equipment | 106,191,564 | 81,149,354 |
TOTAL ASSETS | 217,314,890 | 174,744,203 |
CURRENT LIABILITIES: | ||
Current Portion of Long-Term Debt, Net of Unamortized Loan Fees | 4,511,844 | |
Accounts Payable | 7,012,264 | 3,244,472 |
Other Accrued Taxes | 243,965 | 260,013 |
Deferred Compensation | 62,765 | 63,829 |
Accrued Compensation | 2,051,316 | 2,122,436 |
Other Accrued Liabilities | 2,291,630 | 634,247 |
Total Current Liabilities | 11,661,940 | 10,836,841 |
LONG-TERM DEBT, Net of Unamortized Loan Fees | 78,552,197 | 43,114,772 |
NONCURRENT LIABILITIES: | ||
Loan Guarantees | 169,565 | 222,464 |
Deferred Income Taxes | 22,737,530 | 19,484,500 |
Unrecognized Tax Benefit | 23,304 | 42,775 |
Other Accrued Liabilities | 1,236,949 | 1,112,343 |
Financial Derivative Instruments | 883,365 | |
Deferred Compensation | 351,553 | 396,548 |
Total Noncurrent Liabilities | 24,518,901 | 22,141,995 |
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, 5,093,213 and 5,210,053 Shares Issued and Outstanding | 8,488,689 | 8,683,422 |
Accumulated Other Comprehensive Gain (Loss) | 1,582,455 | (631,253) |
Unearned Compensation | 79,892 | 259,620 |
Retained Earnings | 92,430,816 | 90,338,806 |
Total Stockholders' Equity | 102,581,852 | 98,650,595 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 217,314,890 | $ 174,744,203 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts (in Dollars) (in Dollars) | $ 140,000 | $ 80,000 |
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 | 5,093,213 | 5,210,053 |
Common stock, shares outstanding | 5,093,213 | 5,210,053 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 7,196,702 | $ 12,251,921 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 14,294,377 | 12,637,334 |
PPP Loan Forgiveness | (2,912,433) | |
Unrealized Gains on Investments | (217,876) | |
Undistributed Earnings of Other Equity Investment | (515,963) | (446,130) |
Noncash Patronage Refund | (133,467) | (149,586) |
Stock Issued in Lieu of Cash Payment | 398,424 | 310,088 |
Distributions from Equity Investments | 210,917 | 150,000 |
Stock-based Compensation | 64,301 | 187,951 |
Changes in Assets and Liabilities: | ||
Receivables | 34,677 | (539,262) |
Income Taxes Receivable | 1,121,957 | (790,035) |
Inventories for Resale | 10,238 | (212,597) |
Prepaid Expenses | 89,882 | (887,843) |
Other Assets | (40,627) | (124,823) |
Accounts Payable | 199,257 | 41,424 |
Other Accrued Taxes | (16,048) | 1,322 |
Other Accrued Liabilities | 1,524,133 | (392,021) |
Deferred Income Tax | 2,349,440 | 1,967,008 |
Deferred Compensation | (46,059) | (309,850) |
Net Cash Provided by Operating Activities | 26,524,265 | 20,782,468 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to Property, Plant, and Equipment, Net | (37,977,118) | (19,011,909) |
Materials and Supplies for Construction | (15,651,923) | (2,178,823) |
Other, Net | 4,804 | (63,000) |
Net Cash Used in Investing Activities | (53,624,237) | (21,253,732) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal Payments of Long-Term Debt | (57,330,775) | (4,610,400) |
Loan Proceeds | 56,063,223 | |
Loan Origination Fees | (1,165,859) | |
Changes in Revolving Credit Facility | 33,172,860 | 1,077,589 |
Grants Received for Construction of Plant | 396,360 | 724,465 |
Repurchase of Common Stock | (3,187,500) | (167,467) |
Dividends Paid | (2,843,930) | (2,864,434) |
Net Cash Used in Financing Activities | 25,104,379 | (5,840,247) |
NET CHANGE IN CASH | (1,995,593) | (6,311,511) |
CASH at Beginning of Period | 2,306,149 | 8,617,660 |
CASH at End of Period | 310,556 | 2,306,149 |
Supplemental cash flow information: | ||
Cash paid for interest | 1,505,687 | 2,197,080 |
Net cash paid (received) for income taxes | $ (770,934) | $ 2,555,000 |
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, 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 | ||||
Directors Stock Plan | $ 14,000 | 185,920 | 199,920 | ||
Directors Stock Plan (in Shares) | 8,400 | ||||
Employee Stock Plan | $ 7,657 | 101,083 | 108,740 | ||
Employee Stock Plan (in Shares) | 4,594 | ||||
Restricted Stock Grant | 187,951 | 187,951 | |||
Exercise of RSU's | $ 5,663 | (77,431) | 71,768 | ||
Exercise of RSU's (in Shares) | 3,398 | ||||
Repurchase of Common Stock | $ (11,714) | (155,753) | (167,467) | ||
Repurchase of Common Stock (in Shares) | (7,028) | ||||
Net Income | 12,251,921 | 12,251,921 | |||
Dividends | (2,864,434) | (2,864,434) | |||
Unrealized Gain on Interest Rate Swap | 1,313,258 | 1,313,258 | |||
BALANCE at Dec. 31, 2021 | $ 8,683,422 | (631,253) | 259,620 | 90,338,806 | 98,650,595 |
BALANCE (in Shares) at Dec. 31, 2021 | 5,210,053 | ||||
Directors Stock Plan | $ 33,030 | 354,412 | 387,442 | ||
Directors Stock Plan (in Shares) | 19,818 | ||||
Employee Stock Plan | $ 7,793 | 92,741 | 100,534 | ||
Employee Stock Plan (in Shares) | 4,676 | ||||
Restricted Stock Grant | (30,712) | (30,712) | |||
Non-Cash, Share-Based Compensation | 95,013 | 95,013 | |||
Exercise of RSU's | $ 14,444 | (149,016) | 134,572 | ||
Exercise of RSU's (in Shares) | 8,666 | ||||
Repurchase of Common Stock | $ (250,000) | (2,937,500) | (3,187,500) | ||
Repurchase of Common Stock (in Shares) | (150,000) | ||||
Net Income | 7,196,702 | 7,196,702 | |||
Dividends | (2,843,930) | (2,843,930) | |||
Unrealized Gain on Interest Rate Swap | 2,213,708 | 2,213,708 | |||
BALANCE at Dec. 31, 2022 | $ 8,488,689 | $ 1,582,455 | $ 79,892 | $ 92,430,816 | $ 102,581,852 |
BALANCE (in Shares) at Dec. 31, 2022 | 5,093,213 |
BUSINESS DESCRIPTION AND SUMMAR
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
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 117 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, advanced fiber 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 to 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 (excluding depreciation and amortization) includes all costs related to the 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, 2022 and 2021, our consolidated receivables totaled $3,725,422 and $2,426,009, net of the allowance for doubtful accounts. We believe our receivables as of December 31, 2022 and 2021 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 and 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 2022 2021 Balance at beginning of year $ 80,000 $ 160,000 Additions charged to costs and expenses 206,398 155,763 Accounts written off, net of recoveries (146,398) (235,763) Balance at end of year $ 140,000 $ 80,000 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, 2022 and 2021 was $23,617,800 and $5,357,380. 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, 2022 and 2021, 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 average cost method of inventory costing. 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. Property, plant and equipment additions are recorded net of any Broadband grants received. 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 the expected utilization of new equipment, asset retirement activity and net salvage values to determine adjustments to our depreciation rates. In 2022, we accelerated depreciation on our copper cable networks as we transition to a new FTTP network. Other than this change, we have not made any significant changes to the lives of these assets in the two year period ended December 31, 2022. 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 5 – “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, 2022 and 2021. In the fourth quarter of 2022 and 2021 we completed our annual impairment tests for existing acquired goodwill. This testing resulted in no impairment charges to goodwill at December 31, 2022 and 2021. Financial Derivative Instruments and 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 marketplace. 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 7 – “Interest Rate Swaps”. The fair value of our swap agreements were 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, 2022. As of December 31, 2022, 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 - 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 16 – “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 12 – “Other Investments” for additional information regarding our investments. Advertising Expense Advertising is expensed as incurred. Advertising expense charged to operations was $460,159 and $314,957 in 2022 and 2021. 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 8 – “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 The basic and diluted net income per share are calculated as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 Basic Diluted Basic Diluted Net Income $ 7,196,702 $ 7,196,702 $ 12,251,921 $ 12,251,921 Weighted-average common 5,090,407 5,115,801 5,207,759 5,217,722 Net income per share $ 1.41 $ 1.41 $ 2.35 $ 2.35 The weighted-average shares outstanding, basic and diluted, are calculated as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 Basic Diluted Basic Diluted Weighted-average common 5,090,407 5,090,407 5,207,759 5,207,759 Dilutive RSU's/Options - 25,394 - 9,963 Weighted-average common 5,090,407 5,115,801 5,207,759 5,217,722 Nuvera’s BOD reviews quarterly dividend declarations based on our anticipated earnings, capital requirements and our operating and financial conditions. Recent Accounting Developments Effective January 1, 2022, we adopted Accounting Standards Update (ASU) No. 2021-10 “Disclosures by Business Entities about Government Assistance.” ASU 2021-10 requires disclosure by business entities of the types of government assistance received, the method of accounting for such assistance and the effects of the assistance on its financial statements. The adoption of this guidance did not have a material impact on our related disclosures. In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. During the quarter ended June 30, 2022, we novated a certain hedging relationship to one our IRSAs by changing the reference rated from the London Inter-Bank Offered Rate to a secured overnight financing rate (SOFR). The amendment did not have a material impact on our consolidated financial statements. 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. As of January 1, 2022, the Company adopted ASU 2016-13 and the adoption did not have a significant impact on our consolidated financial statements. We have reviewed all other significant newly issued accounting pronouncements and determined that they are either not applicable to our business or that no material effect is expected on our financial position and results of operations. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2022 | |
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 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 the 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, 2022 and 2021: Twelve Months Ended December 31, 2022 2021 Voice Service¹ $ 6,254,287 6,999,201 Network Access¹ 4,898,470 5,714,304 Video Service¹ 12,497,213 12,595,399 Data Service¹ 24,680,039 23,368,569 Directory² 645,250 699,122 Other Contracted Revenue³ 2,755,039 2,611,230 Other 4 1,353,475 1,215,635 Revenue from customers 53,083,773 53,203,460 Subsidy and other revenue 5 12,630,696 12,634,061 Total revenue $ 65,714,469 $ 65,837,521 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 5 For the year ended December 31, 2022, approximately 78.72% of our total revenue was from month-to-month and other contracted revenue from customers. Approximately 19.22% of our total revenue was from revenue sources outside of the scope of ASC 606. The remaining 2.06% of total revenue was from other sources including CPE and equipment sales and installation. For the year ended December 31, 2021, approximately 78.96% of our total revenue was from month-to-month and other contracted revenue from customers. Approximately 19.19% of our total revenue was from revenue sources outside of the scope of ASC 606. The remaining 1.85% 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 advanced fiber 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 Service – We receive recurring revenue for basic local 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 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 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 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 advanced 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 advanced fiber 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 companies receive funding from A-CAM. Per the FCC Public Notice DA 19-115, the Company receives A-CAM support and has corresponding service deployment obligations under that program. The Company annually receives (i) $596,084 for its Iowa operations and (ii) $8,354,481 for its Minnesota operations. The Company will receive the A-CAM support for a period of 10 years, which started in 2019. The Company uses the funding that it receives through the A-CAM program to meet its defined broadband build-out obligations, which the Company is currently completing. 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, 2022 2021 2020 Accounts receivable, net $ 1,477,692 $ 1,512,369 $ 1,142,476 Contract assets 794,193 662,437 421,557 Contract liabilities 626,306 602,007 670,988 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. We defer and amortize 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, 2022 and 2021, the Company recognized expenses of $300,614 and $193,736, 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 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, 2022 and 2021, the Company recognized revenues of $349,109 and $326,887, 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, 2022. 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. 2. 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, 2022 | |
Disclosure Text Block [Abstract] | |
Lessee, Operating Leases [Text Block] | NOTE 3 – LEASES Under FASB’s 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 twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. 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 requirements, providing additional information about the amounts recorded in the financial statements. The following table includes the ROU assets and operating lease liabilities as of December 31, 2022 and 2021. Short-term operating lease liabilities are included in current liabilities in other accrued liabilities. Long-Term operating lease liabilities are included in noncurrent liabilities in other accrued liabilities. Right of Use Asset Balance December 31, 2022 Balance December 31, 2021 Operating Lease Right-Of-Use Assets $ 1,341,029 $ 1,154,293 Operating Lease Liability Balance Balance December 31, 2021 Short-Term Operating Lease Liabilities Other Accrued Liabilities $ 356,400 Other Accrued Liabilities $ 283,167 Long-Term Operating Lease Liabilities Other Accrued Liabilities 1,026,978 Other Accrued Liabilities 905,528 Total $ 1,383,378 $ 1,188,695 Maturity analysis under these lease agreements are as follows: Maturity Analysis 2023 $ 430,693 2024 319,215 2025 130,863 2026 128,822 2027 131,626 Thereafter 572,681 Total 1,713,900 Less Imputed interest (330,522) Present Value of Operating Leases $ 1,383,378 The following summarizes other information related to leases for the year ended December 31, 2022 as follows: Weighted Average Remaining Lease Term (Years) 6.78 Weighted Average Discount Rate 6.00% 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, 2022 and 2021 was $357,303 and $353,295, respectively. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of December 31, 2022 and 2021, include the following: 2022 2021 Communications Plant: Land $ 712,503 $ 712,503 Buildings 10,918,490 10,838,356 Other Support Assets 22,980,859 21,039,744 Central Office and Circuit Equipment 61,046,604 61,094,351 Cable and Wire Facilities 118,171,835 90,448,989 Other Plant and Equipment 404,883 404,883 Plant Under Construction 5,655,876 5,451,186 219,891,050 189,990,012 Other Property 29,836,775 27,439,201 Video Plant 16,096,032 11,306,071 Total Property, Plant and Equipment $ 265,823,857 $ 228,735,284 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 $12,155,871 and $9,215,052 in 2022 and 2021. The composite depreciation rates on communications plant and equipment for the two years ended December 31, 2022 and 2021, respectively, were 4.7% and 4.1%. 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, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 5 - 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, 2022 and 2021. In 2022 and 2021, we engaged an independent valuation firm to aid in the completion of our annual impairment testing for existing goodwill. For 2022 and 2021, the testing results indicated no impairment charge to goodwill as the determined fair value was sufficient to pass 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: Useful Lives December 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-Lived Intangible Assets Customers Relationships 14-15 yrs $ 42,878,445 $ 30,429,708 $ 42,878,445 $ 28,806,055 Regulatory Rights 15 yrs 4,000,000 4,000,000 4,000,000 3,733,299 Trade Name 3-5 yrs 310,106 273,465 310,106 211,444 Indefinitely-Lived Intangible Assets Video Franchise 3,000,000 - 3,000,000 - Spectrum 877,814 - 877,814 - Total $ 51,066,365 $ 34,703,173 $ 51,066,365 $ 32,750,798 Net Identified Intangible Assets $ 16,363,192 $ 18,315,567 Amortization expense related to the definite-lived assets was $1,952,375 for 2022 and $3,323,726 for 2021. Amortization expense for the next five years is estimated to be: 2023 $ 1,660,295 2024 $ 1,623,654 2025 $ 1,618,732 2026 $ 1,613,809 2027 $ 906,667 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt [Text Block] | NOTE 6 - LONG-TERM DEBT On July 15, 2022, Nuvera and CoBank entered into (i) an Agreement Regarding Amendments to Loan Documents and (ii) an Amended and Restated Revolving Loan Promissory Note. The agreements amended our existing credit facility with CoBank and secured a new credit facility in the aggregate principal amount of $130.0 million. Under the Agreements, among other things, (i) the Company received a $50.0 million term loan to replace existing debt, (ii) a $50.0 million delayed draw term loan, (iii) the Company’s revolving loan was increased from $20.0 million to $30.0 million, (iv) the maturity date of the term loans were set at July 15, 2029, and the maturity day of the revolving loan was set at July 15, 2027, and (v) the Company’s operating subsidiaries’ agreed to extend their previous guarantees, security interests and mortgages to cover the increased amount of the revolving note. The financing was secured to facilitate the Company’s advanced fiber-build plans announced on December 15, 2021. Refer to the Company’s 8-K filing with the SEC on July 20, 2022 for further details regarding the new credit agreements with CoBank. Under the new credit agreement, the Company and its respective subsidiaries have entered into 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. The credit agreement contains certain customary events of default, which include failure to make payments when due, the material inaccuracy of representations or warranties, failure to observe or perform certain covenants, cross-defaults, bankruptcy and insolvency-related events, certain judgments, certain ERISA-related events, or a change in control (as defined in the credit agreement). Secured Credit Facility: New Credit Agreement ● TERM A-1 LOAN - $50,000,000 term note with interest payable quarterly. Final maturity date of this note is July 15, 2029. Twelve quarterly principal payments of $625,000 are due commencing December 31, 2025 through September 30, 2028, and three quarterly principal payments of $937,500 commencing on December 31, 2028 through maturity date. A final balloon payment of $39,687,500 is due at maturity of this note on July 15, 2029. ● DELAYED DRAW TERM LOAN - $50,000,000 Delayed Draw Term Loan with interest on any outstanding amounts payable quarterly. Final maturity date of this loan is July 15, 2029. Twelve quarterly principal payments of 1.25% of the outstanding loan balance are due commencing December 31, 2025 through September 30, 2028, and three quarterly principal payments of 1.875% of the outstanding loan balance commencing on December 31, 2028 through maturity date. A final balloon payment of the balance of the Delayed Draw Term Loan is due at maturity of this note on July 15, 2029. We currently have drawn $10,000,000 on this Delayed Draw Term Loan as of December 31, 2022. ● REVOLVING LOAN - $30,000,000 revolving loan with interest payable quarterly. Final maturity date of this note is July 15, 2027. We currently have drawn $19,885,082 on this revolving note as of December 31, 2022. The term loan borrowings initially bear interest at a “Margin for Base Rate Loans” of 2.15% above the applicable base rate. The margin for base rate loans for term loans increases as our “Leverage Ratio” increases. The revolving loan borrowings initially bear interest at a “Margin for Base Rate Loans” of 1.90% above the applicable base rate. The margin for base rate loans for revolving loans increases as our “Leverage Ratio” increases. 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. Under the new credit facility, Nuvera has the ability to enter into IRSAs in connection with amounts borrowed from CoBank. In connection with the closing of the new credit facility, the Company “rolled over” its two exiting IRSAs. As described in Note 7 – “Interest Rate Swaps,” on August 1, 2018 we entered into an IRSA with CoBank covering 25 percent of our then existing debt balance or $16,137,500 of our aggregate indebtedness to CoBank on August 1, 2018. As of December 31, 2022, our IRSA covered $10,950,800, with a weighted average interest rate of 4.36%. As described in Note 7 – “Interest Rate Swaps,” on August 29, 2019 we entered into a second IRSA with CoBank covering an additional $42,000,000 of our then aggregate indebtedness to CoBank on August 29, 2019. As of December 31, 2022, our IRSA covered $30,693,138, with a weighted average interest rate of 2.69%. Our remaining outstanding debt of $38.2 million remains subject to variable interest rates at an effective weighted average interest rate of 7.99%, as of December 31, 2022. As of December 31, 2022 our additional delayed draw term loan of $40.0 million and unused revolving credit facility of $10.1 million are subject to an unused commitment fee of 0.25% annually, until drawn. Once drawn, this debt would be subject to an effective weighted average interest rate based on current rate of interest in effect at the time. Our loan agreements include restrictions on our ability to pay cash dividends to our stockholders. However, we are allowed to pay dividends in an amount up to $3,000,000 in any year as long as no default or event of default have occurred. Our current Total Leverage Ratio as of December 31, 2022, was 3.13. Our credit facility requires us to comply with specified financial ratios and tests. These financial ratios include total leverage ratio, debt service coverage ratio and equity to total assets ratio. At December 31, 2022, we were in compliance with all the stipulated financial ratios in our 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 CARES Act. The PPP Loan was unsecured and was evidenced by a note in the favor of Citizens as the lender. On February 3, 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. We recognized a gain on the forgiveness of $2,912,433, which included the original amount of the loan plus accrued interest in the quarter ended March 31, 2021. Long-term debt is as follows: 2022 2021 Secured seven-year reducing credit facility to CoBank, ACB, in quarterly installments of $625,000 (beginning on December 31, 2025) and quarterly installments of $937,500 (beginning on December 31, 2028), plus a notional variable rate of interest through July 15, 2029. $ 50,000,000 $ - Secured seven-year reducing credit facility to CoBank, ACB, in quarterly installments of 1.25% of loan balance (beginning on December 31, 2025) and quarterly installments of 1.875% of loan balance beginning on December 31, 2028), plus a notional variable rate of interest through July 15, 2029. 10,000,000 - Secured five-year revolving credit facility of up to $30,000,000 to CoBank, ACB, plus a notional variable rate of interest through July 15, 2027. 19,885,082 - 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. - 46,902,185 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. - 1,077,589 Less: Unamortized Loan Fees (1,332,885) (353,158) 78,552,197 47,626,616 Less: Amount due within one year - (4,610,400) Net of Current Portion of Unamortized Loan Fees - 98,556 Total Long Term Debt $ 78,552,197 $ 43,114,772 Required principal payments for the next five years are as follows: 2023 $ - 2024 $ - 2025 $ 750,000 2026 $ 2,984,569 2027 $ 22,845,873 |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Financial Instruments Disclosure [Text Block] | NOTE 7 – 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. Under the new credit facility, Nuvera has the ability to enter into IRSAs in connection with amounts borrowed from CoBank. In connection with the closing of the new credit facility, the Company “rolled over” its two exiting IRSAs. To meet this objective, we have entered into an IRSA with CoBank covering 25 percent of our then 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 SOFR variable rate payment is below a contractual rate or (ii) receive a payment if the SOFR 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 then aggregate indebtedness to CoBank on 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 SOFR variable rate payment is below a contractual rate or (ii) receive a payment if the SOFR 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 SOFR plus the contractual SOFR 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, 2022 we had the following IRSAs in effect. Loan # Maturity Date Notional Amount Current Effective Interest Rate (1) TERM A-1 LN 07/31/2029 $ 10,950,800 4.36% (SOFR Base Rate of 2.96% plus TERM A-1 LN 07/31/2029 $ 30,693,138 2.69% (SOFR Base Rate of 1.29% plus (1) As described in Note 6 – “Long-Term Debt,” the notes above initially bears interest at a SOFR rate determined by the maturity of the note, plus a “Base Rate Margin” rate equal to a maximum of 2.90% according to the individual secured credit facility. The Base Rate Margin increases as the borrower’s “Leverage Ratio” increases. 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 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, 2022, the fair value asset of these swaps were $2,214,462, which has been recorded net of deferred tax expense of $632,007, resulting in the $1,582,455 in accumulated other comprehensive gain. On December 31, 2021, the fair value liability of these swaps was $883,365, which has been recorded net of deferred tax benefit of $252,112, resulting in the $631,253 in accumulated other comprehensive loss. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 8 - INCOME TAXES Income taxes recorded in our consolidated statements of income consists of the following: 2022 2021 Taxes currently payable Federal $ (50,330) $ 560,808 State 380,082 1,199,569 Deferred Income Taxes 2,368,911 1,971,596 Total Income Tax Expense $ 2,698,663 $ 3,731,973 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, 2022 and 2021 we had $19,787 and $38,673 of unrecognized tax benefits that if recognized would affect the tax rate. 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, 2022 and 2021 are as follows: 2022 2021 Balance, beginning of year $ 38,673 $ 44,155 Increases related to prior year tax positions - - Decreases related to prior year tax positions (18,886) (5,482) Increases related to current year tax positions - - Settlements - - Balance, end of year $ 19,787 $ 38,673 We are primarily subject to United States, Minnesota, Iowa, Nebraska, North Dakota and Wisconsin income taxes. Tax years subsequent to 2018 remain open to examination by federal and state tax authorities. During the year ending December 31, 2022, we settled our examination by the State of Minnesota. The examination did not have a material effect on our financial statements. Our policy is to recognize interest and penalties related to income tax matters as income tax expense. As of December 31, 2022 and 2021 we had $3,518 and $4,102 of interest or penalties accrued that related to income tax matters. The differences between the statutory federal tax rate and the effective tax rate were as follows: 2022 2021 Statutory Tax Rate 21.00 % 21.00 % Effect of: State Income Taxes Net of Federal Tax Benefit 8.17 6.72 Forgiveness of PPP Loan - (3.83) Permanent Differences and Other, Net (1.90) (0.54) Effective tax rate 27.27 % 23.35 % Our effective income tax rate for the year ended December 31, 2022 was higher than the effective income tax rate for the year ended December 31, 2021 primarily due to the SBA’s PPP loan forgiveness not being taxable at the federal and state level in 2021. Deferred income taxes and unrecognized tax benefits reflected in our consolidated balance sheets are summarized as follows: 2022 2021 Deferred Tax Assets Accrued Expenses $ (382,546) $ (415,464) Deferred Compensation (118,265) (131,412) Other (106,371) (122,939) Unrealized Loss on SWAP - (252,112) State NOL (19,668) - Federal NOL (3,472,536) - Leases (394,878) (321,530) Total Deferred Tax Assets (4,494,264) (1,243,457) Deferred Tax Liabilities Fixed Assets 21,076,220 14,921,908 Intangible Assets 3,591,783 4,124,935 Investments 1,322,296 1,180,314 Unrealized Gain on SWAP 632,007 - Contract Assets 226,698 189,089 Leases 382,790 311,711 Total Deferred Tax Liabilities: 27,231,794 20,727,957 Total Net Deferred Taxes $ 22,737,530 $ 19,484,500 |
INCENTIVE AND RETIREMENT PLANS
INCENTIVE AND RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits [Text Block] | NOTE 9 – INCENTIVE AND RETIREMENT PLANS In 2006, we implemented an EIP for employees other than executive officers and a MIP for executive officers (collectively the 2006 Plan). In 2015, our BOD adopted and our shareholders approved our 2015 Employee Stock Plan (2015 ESP), which permits the issuance of up to 200,000 shares of our Common Stock in stock awards for performance under the 2006 Plan. Each qualified employee of the Company may elect to receive up to 50% of their incentive compensation in Company Common Stock in lieu of cash. Each Company executive officer is required to receive 50% of their incentive compensation earned in Company Common Stock in lieu of cash. As of March 15, 2023, 155,399 shares remain available to be issued under the 2015 ESP. 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 $402,398 and $397,064 in 2022 and 2021. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 10 – COMMITMENTS AND CONTINGENCIES On December 15, 2021, the Company announced plans for a fiber network initiative. The Company has made commitments to purchase materials and entered into contracts with various parties to successfully build this next-generation fiber network. As of December 31, 2022, the Company had outstanding commitments for material of approximately $10.6 million and outstanding contract amounts of approximately $19.1 million. 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. Our capital budget for 2023 is approximately $49.3 million and will be financed through our credit facility with CoBank debt financing and internally generated funds. The Company has committed to buying large quantities of fiber in 2023 to accommodate the building of its new advance fiber network. |
NONCASH ACTIVITIES
NONCASH ACTIVITIES | 12 Months Ended |
Dec. 31, 2022 | |
Noncash Investing Abstract | |
Noncash Investing [Text Block] | NOTE 11 - NONCASH ACTIVITIES Noncash investing activities included $5,279,044 and $1,710,509 during the years ended December 31, 2022 and 2021. These activities related to plant and equipment additions placed in service and are recorded in our accounts payable at year-end. Noncash financing activities include $1,501,850 and $169,369 during the years ended December 31, 2022 and 2021. The activities related to broadband grants awarded and are recorded in our accounts receivable at year-end. |
OTHER INVESTMENTS
OTHER INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Other Investments [Abstract] | |
Other Investments [Text Block] | NOTE 12 – 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 16 – “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, 2022, the Company has recorded a gain on one of our investments of $217,876. As of December 31, 2021 we had not recorded any gains or losses on our investments. |
GUARANTEES
GUARANTEES | 12 Months Ended |
Dec. 31, 2022 | |
Guarantees [Abstract] | |
Guarantees [Text Block] | NOTE 13 - GUARANTEES Nuvera has guaranteed a portion of a ten-year loan owed by FiberComm set to mature on April 30, 2026. As of December 31, 2022, we have recorded a liability of $169,565 in connection with the guarantee on this loan. This guarantee may be exercised if FiberComm does not make its required payments on this note. |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 14 – DEFERRED COMPENSATION As of December 31, 2022 and 2021, 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. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement [Text Block] | NOTE 15 – STOCK BASED COMPENSATION The Company’s 2017 Omnibus Stock Plan (2017 OSP) was adopted by the Company’s BOD on February 24, 2017 and approved by the Company’s shareholders at the May 25, 2017 Annual Meeting of Shareholders. The 2017 OSP enables the Company to grant stock incentive awards to current and new employees, including officers, and to Board members and service providers. The 2017 OSP 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 2017 OSP permits the issuance of up to 625,000 shares of our Common Stock in any of the above stock awards. As of March 16, 2023, 403,994 shares remain available for future grant under the OSP. Starting in 2017, our BOD and Compensation Committee granted RSU awards to the Company’s executive officers under the 2017 OSP. We recognize share-based compensation expense for these RSUs over the vesting period of the RSUs, which is determined by our BOD. Forfeitures of RSUs are accounted for as they occur. Each executive officer was eligible to 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 vest over a three-year period, subject to 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 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 fewer performance-based RSUs based on if the actual ROIC achieved over the time period is more or less than target. Upon vesting of either time-based or performance-based RSUs, the executive officers are issued Common Stock in exchange for the RSUs. RSUs currently issued and outstanding are as follows: Targeted Performance-Based RSUs Closing Stock Price Time-Based RSUs Vesting Date Balance at December 31, 2020 7,638 9,611 Issued 3,364 5,247 $ 21.90 12/31/2023 Exercised - (1,588) $ 23.67 12/31/2020 Exercised (1,562) - $ 21.75 12/31/2021 Balance at December 31, 2021 9,440 13,270 Forfeited (1,685) (4,325) Exercised (4,391) (4,244) $ 17.18 12/31/2022 Balance at December 31, 2022 3,364 4,701 Option Awards In 2022, after considerable study, discussion and interaction with our consultants, the Compensation Committee decided to replace RSUs with non-qualified stock Options. The Compensation Committee believes that grants of Options more directly align management long-term equity compensation with increased shareholder value creation at a time when the Company is engaged in significant investment and transformation as part of its long-term strategy. The Compensation Committee also determined to extend the grant of Options include Named Executive Officers, senior employee directors and other employee directors as key members of the Company leadership team and contributors of overall success. As previously disclosed, the number of Options awarded was computed as a percentage of the employee’s base salary using a Black-Scholes formula using an exercise price equal to the closing price of Company common stock of $21.20 on April 11, 2022. These Options will vest one-third each on April 11, 2023, 2024 and 2025. Closing Stock Price Vesting Date Options Balance at December 31, 2021 - Issued 40,577 $ 21.20 4/11/2023 Issued 40,583 $ 21.20 4/11/2024 Issued 40,583 $ 21.20 4/11/2025 Balance at December 31, 2022 121,743 The grant date fair value of employee stock Option awards is determined using the Black Scholes Option-pricing model. The following assumptions were used during the following periods: 2022 Grants Exercise Price $ 21.20 Risk-Free Rate of Interest 1.515% Expected Term (Years) 10 Expected Stock Price Volatility 18.1% Dividend Yield 2.44% The following table summarizes the Company’s employee stock Option activity under the 2017 OSP, which was approved by the Company’s shareholders, for the following periods: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term (Years) Aggregate Intrinsic Value (in Thousands) Outstanding as of December 31, 2021 - $ - - $ - Granted 121,743 21.20 9.28 - Forfeited - - - - Outstanding as of December 31, 2022 121,743 $ 21.20 9.28 $ - Options Vested and Exercisable as of - $ - - $ - The Options had no intrinsic value as of December 31, 2022. The weighted average grant date fair value per share for employee stock and non-employee Option grants during the twelve months ended December 31, 2022, was $3.24. At December 31, 2022, the total unrecognized compensation related to unvested employee and non-employee stock Option awards granted was $299,434, which the Company expects to recognize over a weighted-average period of approximately 2.28 years. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 16 – 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 advanced fiber 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 – 20.00% subsidiary equity ownership interest. FiberComm 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 • Fiber Minnesota, LLC – 7.54% subsidiary equity ownership interest. FM is a Minnesota state-wide network that provides connectivity for regional businesses. |
BROADBAND GRANTS
BROADBAND GRANTS | 12 Months Ended |
Dec. 31, 2022 | |
Broadband Grants Abstract | |
Broadband Grants [Text Block] | NOTE 17 – BROADBAND GRANTS On December 8, 2022, the Company was awarded four broadband grants from the Minnesota Department of Employment and Economic Development (DEED). The grants will provide up to 45.0% to 50.0% of the total cost of building fiber connections to homes and businesses for improved high-speed Internet in unserved and underserved communities and businesses in the Company’s service area. The Company is eligible to receive $8,594,688 of approximately $18,139,749 total project costs. The Company will provide the remaining 50.0% to 55.0% matching funds. Construction and expenditures for these projects will begin in the spring of 2023. We have not received any funds for these projects as of December 31, 2022. In January 2020, the Company was awarded a broadband grant from the 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 and were completed under budget in the third quarter of 2021. We have received $724,465 for these projects as of December 31, 2022. 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 began in the spring of 2021. We have received $396,360 for these projects as of December 31, 2022. |
Transactions with equity method
Transactions with equity method investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Note 18 – 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 $501,187 and $643,855 for 2022 and 2021. Total expenses from transactions with affiliates were $496,028 and $544,931 for 2022 and 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 19 -- SUBSEQUENT EVENTS On January 12, 2023, Nuvera announced that it and the other owners of FiberComm will sell 100% of their interest in FiberComm to ImOn Communications, LLC. Fibercomm has been providing high quality Internet and voice services to businesses in the Sioux City, Iowa market for over 20 years. Closing of the transaction is subject to closing conditions, including regulatory approvals. Nuvera currently holds a 20% interest in FiberComm through its wholly owned subsidiary Peoples Telephone Company. The parties expect the sale to close late in the first quarter or early in the second quarter in 2023. Nuvera’s BOD has declared a regular quarterly dividend on our common stock of $.14 per share, payable on March 15, 2023 to stockholders of record at the close of business on March 6, 2023. 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, 2022 | |
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 117 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, advanced fiber 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. |
Consolidation, Policy [Policy Text Block] | Basis of Presentation and Principles of Consolidation Our accounting policies conform to 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. |
Cost of Goods and Service [Policy Text Block] | Classification of Costs and Expenses Cost of services (excluding depreciation and amortization) includes all costs related to the 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, 2022 and 2021, our consolidated receivables totaled $3,725,422 and $2,426,009, net of the allowance for doubtful accounts. We believe our receivables as of December 31, 2022 and 2021 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 and 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 2022 2021 Balance at beginning of year $ 80,000 $ 160,000 Additions charged to costs and expenses 206,398 155,763 Accounts written off, net of recoveries (146,398) (235,763) Balance at end of year $ 140,000 $ 80,000 |
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, 2022 and 2021 was $23,617,800 and $5,357,380. 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, 2022 and 2021, 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 average cost method of inventory costing. |
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. Property, plant and equipment additions are recorded net of any Broadband grants received. 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 the expected utilization of new equipment, asset retirement activity and net salvage values to determine adjustments to our depreciation rates. In 2022, we accelerated depreciation on our copper cable networks as we transition to a new FTTP network. Other than this change, we have not made any significant changes to the lives of these assets in the two year period ended December 31, 2022. |
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 5 – “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, 2022 and 2021. In the fourth quarter of 2022 and 2021 we completed our annual impairment tests for existing acquired goodwill. This testing resulted in no impairment charges to goodwill at December 31, 2022 and 2021. |
Fair Value Measurement, Policy [Policy Text Block] | Financial Derivative Instruments and 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 marketplace. 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 7 – “Interest Rate Swaps”. The fair value of our swap agreements were determined based on Level 2 inputs. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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, 2022. As of December 31, 2022, 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 - |
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 16 – “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 12 – “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 $460,159 and $314,957 in 2022 and 2021. |
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 8 – “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 Per Share, Policy [Policy Text Block] | Earnings and Dividends Per Share The basic and diluted net income per share are calculated as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 Basic Diluted Basic Diluted Net Income $ 7,196,702 $ 7,196,702 $ 12,251,921 $ 12,251,921 Weighted-average common 5,090,407 5,115,801 5,207,759 5,217,722 Net income per share $ 1.41 $ 1.41 $ 2.35 $ 2.35 The weighted-average shares outstanding, basic and diluted, are calculated as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 Basic Diluted Basic Diluted Weighted-average common 5,090,407 5,090,407 5,207,759 5,207,759 Dilutive RSU's/Options - 25,394 - 9,963 Weighted-average common 5,090,407 5,115,801 5,207,759 5,217,722 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Developments Effective January 1, 2022, we adopted Accounting Standards Update (ASU) No. 2021-10 “Disclosures by Business Entities about Government Assistance.” ASU 2021-10 requires disclosure by business entities of the types of government assistance received, the method of accounting for such assistance and the effects of the assistance on its financial statements. The adoption of this guidance did not have a material impact on our related disclosures. In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. During the quarter ended June 30, 2022, we novated a certain hedging relationship to one our IRSAs by changing the reference rated from the London Inter-Bank Offered Rate to a secured overnight financing rate (SOFR). The amendment did not have a material impact on our consolidated financial statements. 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. As of January 1, 2022, the Company adopted ASU 2016-13 and the adoption did not have a significant impact on our consolidated financial statements. We have reviewed all other significant newly issued accounting pronouncements and determined that they are either not applicable to our business 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, 2022 | |
Accounting Policies [Abstract] | |
Financing Receivable, Current, Allowance for Credit Loss [Table Text Block] | Year Ended December 31 2022 2021 Balance at beginning of year $ 80,000 $ 160,000 Additions charged to costs and expenses 206,398 155,763 Accounts written off, net of recoveries (146,398) (235,763) Balance at end of year $ 140,000 $ 80,000 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2022 Year Ended December 31, 2021 Basic Diluted Basic Diluted Net Income $ 7,196,702 $ 7,196,702 $ 12,251,921 $ 12,251,921 Weighted-average common 5,090,407 5,115,801 5,207,759 5,217,722 Net income per share $ 1.41 $ 1.41 $ 2.35 $ 2.35 |
Schedule of Weighted Average Number of Shares [Table Text Block] | Year Ended December 31, 2022 Year Ended December 31, 2021 Basic Diluted Basic Diluted Weighted-average common 5,090,407 5,090,407 5,207,759 5,207,759 Dilutive RSU's/Options - 25,394 - 9,963 Weighted-average common 5,090,407 5,115,801 5,207,759 5,217,722 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Twelve Months Ended December 31, 2022 2021 Voice Service¹ $ 6,254,287 6,999,201 Network Access¹ 4,898,470 5,714,304 Video Service¹ 12,497,213 12,595,399 Data Service¹ 24,680,039 23,368,569 Directory² 645,250 699,122 Other Contracted Revenue³ 2,755,039 2,611,230 Other 4 1,353,475 1,215,635 Revenue from customers 53,083,773 53,203,460 Subsidy and other revenue 5 12,630,696 12,634,061 Total revenue $ 65,714,469 $ 65,837,521 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 5 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Year Ended December 31, 2022 2021 2020 Accounts receivable, net $ 1,477,692 $ 1,512,369 $ 1,142,476 Contract assets 794,193 662,437 421,557 Contract liabilities 626,306 602,007 670,988 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block [Abstract] | |
ROU [Table Text Block] | Right of Use Asset Balance December 31, 2022 Balance December 31, 2021 Operating Lease Right-Of-Use Assets $ 1,341,029 $ 1,154,293 |
Operating lease liabilities [Table Text Block] | Operating Lease Liability Balance Balance December 31, 2021 Short-Term Operating Lease Liabilities Other Accrued Liabilities $ 356,400 Other Accrued Liabilities $ 283,167 Long-Term Operating Lease Liabilities Other Accrued Liabilities 1,026,978 Other Accrued Liabilities 905,528 Total $ 1,383,378 $ 1,188,695 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity Analysis 2023 $ 430,693 2024 319,215 2025 130,863 2026 128,822 2027 131,626 Thereafter 572,681 Total 1,713,900 Less Imputed interest (330,522) Present Value of Operating Leases $ 1,383,378 |
Lease, Cost [Table Text Block] | Weighted Average Remaining Lease Term (Years) 6.78 Weighted Average Discount Rate 6.00% |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | 2022 2021 Communications Plant: Land $ 712,503 $ 712,503 Buildings 10,918,490 10,838,356 Other Support Assets 22,980,859 21,039,744 Central Office and Circuit Equipment 61,046,604 61,094,351 Cable and Wire Facilities 118,171,835 90,448,989 Other Plant and Equipment 404,883 404,883 Plant Under Construction 5,655,876 5,451,186 219,891,050 189,990,012 Other Property 29,836,775 27,439,201 Video Plant 16,096,032 11,306,071 Total Property, Plant and Equipment $ 265,823,857 $ 228,735,284 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Useful Lives December 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-Lived Intangible Assets Customers Relationships 14-15 yrs $ 42,878,445 $ 30,429,708 $ 42,878,445 $ 28,806,055 Regulatory Rights 15 yrs 4,000,000 4,000,000 4,000,000 3,733,299 Trade Name 3-5 yrs 310,106 273,465 310,106 211,444 Indefinitely-Lived Intangible Assets Video Franchise 3,000,000 - 3,000,000 - Spectrum 877,814 - 877,814 - Total $ 51,066,365 $ 34,703,173 $ 51,066,365 $ 32,750,798 Net Identified Intangible Assets $ 16,363,192 $ 18,315,567 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2023 $ 1,660,295 2024 $ 1,623,654 2025 $ 1,618,732 2026 $ 1,613,809 2027 $ 906,667 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments [Table Text Block] | Long-term debt is as follows: 2022 2021 Secured seven-year reducing credit facility to CoBank, ACB, in quarterly installments of $625,000 (beginning on December 31, 2025) and quarterly installments of $937,500 (beginning on December 31, 2028), plus a notional variable rate of interest through July 15, 2029. $ 50,000,000 $ - Secured seven-year reducing credit facility to CoBank, ACB, in quarterly installments of 1.25% of loan balance (beginning on December 31, 2025) and quarterly installments of 1.875% of loan balance beginning on December 31, 2028), plus a notional variable rate of interest through July 15, 2029. 10,000,000 - Secured five-year revolving credit facility of up to $30,000,000 to CoBank, ACB, plus a notional variable rate of interest through July 15, 2027. 19,885,082 - 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. - 46,902,185 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. - 1,077,589 Less: Unamortized Loan Fees (1,332,885) (353,158) 78,552,197 47,626,616 Less: Amount due within one year - (4,610,400) Net of Current Portion of Unamortized Loan Fees - 98,556 Total Long Term Debt $ 78,552,197 $ 43,114,772 |
Schedule of Maturities of Long-Term Debt [Table Text Block] | 2023 $ - 2024 $ - 2025 $ 750,000 2026 $ 2,984,569 2027 $ 22,845,873 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2022 2021 Taxes currently payable Federal $ (50,330) $ 560,808 State 380,082 1,199,569 Deferred Income Taxes 2,368,911 1,971,596 Total Income Tax Expense $ 2,698,663 $ 3,731,973 |
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward [Table Text Block] | 2022 2021 Balance, beginning of year $ 38,673 $ 44,155 Increases related to prior year tax positions - - Decreases related to prior year tax positions (18,886) (5,482) Increases related to current year tax positions - - Settlements - - Balance, end of year $ 19,787 $ 38,673 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2022 2021 Statutory Tax Rate 21.00 % 21.00 % Effect of: State Income Taxes Net of Federal Tax Benefit 8.17 6.72 Forgiveness of PPP Loan - (3.83) Permanent Differences and Other, Net (1.90) (0.54) Effective tax rate 27.27 % 23.35 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2022 2021 Deferred Tax Assets Accrued Expenses $ (382,546) $ (415,464) Deferred Compensation (118,265) (131,412) Other (106,371) (122,939) Unrealized Loss on SWAP - (252,112) State NOL (19,668) - Federal NOL (3,472,536) - Leases (394,878) (321,530) Total Deferred Tax Assets (4,494,264) (1,243,457) Deferred Tax Liabilities Fixed Assets 21,076,220 14,921,908 Intangible Assets 3,591,783 4,124,935 Investments 1,322,296 1,180,314 Unrealized Gain on SWAP 632,007 - Contract Assets 226,698 189,089 Leases 382,790 311,711 Total Deferred Tax Liabilities: 27,231,794 20,727,957 Total Net Deferred Taxes $ 22,737,530 $ 19,484,500 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Targeted Performance-Based RSUs Closing Stock Price Time-Based RSUs Vesting Date Balance at December 31, 2020 7,638 9,611 Issued 3,364 5,247 $ 21.90 12/31/2023 Exercised - (1,588) $ 23.67 12/31/2020 Exercised (1,562) - $ 21.75 12/31/2021 Balance at December 31, 2021 9,440 13,270 Forfeited (1,685) (4,325) Exercised (4,391) (4,244) $ 17.18 12/31/2022 Balance at December 31, 2022 3,364 4,701 |
Share-Based Compensation Arrangements by Share-Based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block] | Closing Stock Price Vesting Date Options Balance at December 31, 2021 - Issued 40,577 $ 21.20 4/11/2023 Issued 40,583 $ 21.20 4/11/2024 Issued 40,583 $ 21.20 4/11/2025 Balance at December 31, 2022 121,743 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2022 Grants Exercise Price $ 21.20 Risk-Free Rate of Interest 1.515% Expected Term (Years) 10 Expected Stock Price Volatility 18.1% Dividend Yield 2.44% |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term (Years) Aggregate Intrinsic Value (in Thousands) Outstanding as of December 31, 2021 - $ - - $ - Granted 121,743 21.20 9.28 - Forfeited - - - - Outstanding as of December 31, 2022 121,743 $ 21.20 9.28 $ - Options Vested and Exercisable as of - $ - - $ - |
BUSINESS DESCRIPTION AND SUMM_3
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Number of Reportable Segments | 1 | |
Accounts Receivable, after Allowance for Credit Loss, Current | $ 3,725,422 | $ 2,426,009 |
Inventory, Net | 23,617,800 | 5,357,380 |
Goodwill | 49,903,029 | 49,903,029 |
Advertising Expense | $ 460,159 | $ 314,957 |
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, 2022 | Dec. 31, 2021 | |
Allowance For Doubtful Accounts Abstract | ||
Balance at beginning of year | $ 80,000 | $ 160,000 |
Additions charged to costs and expenses | 206,398 | 155,763 |
Accounts written off, net of recoveries | (146,398) | (235,763) |
Balance at end of year | $ 140,000 | $ 80,000 |
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, 2022 | Dec. 31, 2021 | |
Basic And Diluted Net Income Per Share Abstract | ||
Net Income, Basic | $ 7,196,702 | $ 12,251,921 |
Net Income, Diluted | $ 7,196,702 | $ 12,251,921 |
Weighted-average common shares outstanding, Basic | 5,090,407 | 5,207,759 |
Weighted-average common shares outstanding, Diluted | 5,115,801 | 5,217,722 |
Net income per share, Basic | $ 1.41 | $ 2.35 |
Net income per share, Diluted | $ 1.41 | $ 2.35 |
BUSINESS DESCRIPTION AND SUMM_6
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Weighted-average shares outstanding, basic and diluted - shares - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Shares Outstanding Basic And Diluted Shares Abstract | ||
Weighted-average common shares outstanding, Basic | 5,090,407 | 5,207,759 |
Dilutive RSU's/Options | 25,394 | 9,963 |
Weighted-average common shares outstanding, Diluted | 5,115,801 | 5,217,722 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUE RECOGNITION (Details) [Line Items] | ||
Professional and Contract Services Expense | $ 300,614 | $ 193,736 |
Deferred Revenue, Noncurrent | $ 349,109 | $ 326,887 |
Minimum [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Contract Term | 3 years | |
Payment Term | 30 days | |
Maximum [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Contract Term | 10 years | |
Payment Term | 60 days | |
Iowa Operations [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Construction Contractor, Receivable, Excluding Contract Retainage | $ 596,084 | |
Minnesota Operations [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Construction Contractor, Receivable, Excluding Contract Retainage | $ 8,354,481 | |
Other Contracted Revenue [Member] | Minimum [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Revenue Recognition Period | 3 years | |
Other Contracted Revenue [Member] | Maximum [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Revenue Recognition Period | 10 years | |
Product and Service, Other [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Revenue Recognition Period | 1 month | |
ACAM [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Contract Receivable Period | 10 years | |
Month To Month And Other Contracted Revenue [Member] | | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Concentration Risk, Percentage | 78.72% | 78.96% |
Outside of The Scope of ASC-606 [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Concentration Risk, Percentage | 19.22% | 19.19% |
CPE and Equipment Sales And Installation [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | ||
REVENUE RECOGNITION (Details) [Line Items] | ||
Concentration Risk, Percentage | 2.06% | 1.85% |
REVENUE RECOGNITION (Details) -
REVENUE RECOGNITION (Details) - Revenue from contracts with customers - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | $ 53,083,773 | $ 53,203,460 |
Subsidy and other revenue outside scope of ASC 6065 | 12,630,696 | 12,634,061 |
Total revenue | 65,714,469 | 65,837,521 |
Voice Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 6,254,287 | 6,999,201 |
Total revenue | 5,694,428 | 6,175,847 |
Network Access [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 4,898,470 | 5,714,304 |
Total revenue | 4,759,084 | 5,652,372 |
Video Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 12,497,213 | 12,595,399 |
Total revenue | 12,497,458 | 12,597,289 |
Data Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 24,680,039 | 23,368,569 |
Total revenue | 27,028,332 | 25,495,739 |
Directory [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 645,250 | 699,122 |
Other Contracted Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 2,755,039 | 2,611,230 |
Product and Service, Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | $ 1,353,475 | $ 1,215,635 |
REVENUE RECOGNITION (Details)_2
REVENUE RECOGNITION (Details) - Receivables, contracts assets and contract liabilities from revenue contracts with our customers - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables Contracts Assets And Contract Liabilities From Revenue Contracts With Our Customers Abstract | |||
Accounts receivable, net | $ 1,477,692 | $ 1,512,369 | $ 1,142,476 |
Contract assets | 794,193 | 662,437 | 421,557 |
Contract liabilities | $ 626,306 | $ 602,007 | $ 670,988 |
LEASES (Details)
LEASES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | ||
Operating Lease, Expense | $ 357,303 | $ 353,295 |
LEASES (Details) - Right of Use
LEASES (Details) - Right of Use Asset - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Right Of Use Asset Abstract | ||
Operating Lease Right-Of-Use Assets | $ 1,341,029 | $ 1,154,293 |
LEASES (Details) - Operating le
LEASES (Details) - Operating lease liability. - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Lease, Liability [Abstract] | ||
Short-Term Operating Lease Liability | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Short-Term Operating Lease Liability | $ 356,400 | $ 283,167 |
Long-Term Operating Lease Liability | Other Accrued Liabilities | Other Accrued Liabilities |
Long-Term Operating Lease Liability | $ 1,026,978 | $ 905,528 |
Total | $ 1,383,378 | $ 1,188,695 |
LEASES (Details) - Maturity ana
LEASES (Details) - Maturity analysis under these lease agreements - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Maturity Analysis Under These Lease Agreements Abstract | ||
2023 | $ 430,693 | |
2024 | 319,215 | |
2025 | 130,863 | |
2026 | 128,822 | |
2027 | 131,626 | |
Thereafter | 572,681 | |
Total | 1,713,900 | |
Less Imputed interest | (330,522) | |
Present Value of Operating Leases | $ 1,383,378 | $ 1,188,695 |
LEASES (Details) - Other inform
LEASES (Details) - Other information related to leases | Dec. 31, 2022 |
Other Information Related To Leases Abstract | |
Weighted Average Remaining Lease Term (Years) | 6 years 9 months 10 days |
Weighted Average Discount Rate | 6% |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items] | ||
Depreciation | $ 12,155,871 | $ 9,215,052 |
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 4.70% | 4.10% |
Other Property and Video [Member] | Minimum [Member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Other Property and Video [Member] | Maximum [Member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items] | ||
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, 2022 | Dec. 31, 2021 |
Communications Plant: | ||
Communications Plant | $ 219,891,050 | $ 189,990,012 |
Other Property | 29,836,775 | 27,439,201 |
Video Plant | 16,096,032 | 11,306,071 |
Total Property, Plant and Equipment | 265,823,857 | 228,735,284 |
Land [Member] | ||
Communications Plant: | ||
Communications Plant | 712,503 | 712,503 |
Building [Member] | ||
Communications Plant: | ||
Communications Plant | 10,918,490 | 10,838,356 |
Other Support Assets [Member] | ||
Communications Plant: | ||
Communications Plant | 22,980,859 | 21,039,744 |
Central Office And Circuit Equipment [Member] | ||
Communications Plant: | ||
Communications Plant | 61,046,604 | 61,094,351 |
Cable and Wire Facilities [Member] | ||
Communications Plant: | ||
Communications Plant | 118,171,835 | 90,448,989 |
Other Plant and Equipment [Member] | ||
Communications Plant: | ||
Communications Plant | 404,883 | 404,883 |
Plant Under Construction [Member] | ||
Communications Plant: | ||
Communications Plant | $ 5,655,876 | $ 5,451,186 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 49,903,029 | $ 49,903,029 |
Amortization of Intangible Assets | $ 1,952,375 | $ 3,323,726 |
GOODWILL AND INTANGIBLES (Det_2
GOODWILL AND INTANGIBLES (Details) - Components of our identified intangible assets - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 51,066,365 | $ 51,066,365 |
Accumulated Amortization | 34,703,173 | 32,750,798 |
Net Identified Intangible Assets | 16,363,192 | 18,315,567 |
Customer Relationships [Member] | ||
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | 42,878,445 | 42,878,445 |
Accumulated Amortization | $ 30,429,708 | 28,806,055 |
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 | 4,000,000 | 3,733,299 |
Trade Names [Member] | ||
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | 310,106 | 310,106 |
Accumulated Amortization | $ 273,465 | 211,444 |
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 |
Accumulated Amortization | ||
Spectrum [Member] | ||
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | 877,814 | 877,814 |
Accumulated Amortization |
GOODWILL AND INTANGIBLES (Det_3
GOODWILL AND INTANGIBLES (Details) - Summary of Future Amortization Expense | Dec. 31, 2022 USD ($) |
Summary Of Future Amortization Expense Abstract | |
2023 | $ 1,660,295 |
2024 | 1,623,654 |
2025 | 1,618,732 |
2026 | 1,613,809 |
2027 | $ 906,667 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Jul. 15, 2022 | Apr. 16, 2020 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 15, 2029 | Aug. 29, 2019 | Jan. 01, 2018 | |
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Proceeds from Issuance of Long-Term Debt | $ 56,063,223 | |||||||
Long-Term Debt | 78,552,197 | $ 47,626,616 | ||||||
Secured Debt [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 130,000,000 | |||||||
Long-Term Debt | $ 38,200,000 | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.99% | |||||||
Debt Instrument Threshold Amount Dividends | $ 3,000,000 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 3.13% | |||||||
Term Loan [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Proceeds from Issuance of Long-Term Debt | 50,000,000 | |||||||
Delayed Draw Term Loan [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 40,000,000 | |||||||
Proceeds from Issuance of Long-Term Debt | 50,000,000 | |||||||
Long-Term Debt, Gross | 50,000,000 | |||||||
Long-Term Debt | 10,000,000 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 10,100,000 | |||||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |||||||
Delayed Draw Term Loan [Member] | Beginning on December 2028 [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Debt Instrument Periodic Payment Principal In Percentage | 1.875% | |||||||
Revolving Credit Facility [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | $ 30,000,000 | ||||||
Debt Instrument, Interest Rate Terms | Margin for Base Rate Loans” of 1.90% above the applicable base rate | |||||||
Term A-1 Loan [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Long-Term Debt, Gross | $ 50,000,000 | |||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 39,687,500 | |||||||
Debt Instrument, Interest Rate Terms | Margin for Base Rate Loans” of 2.15% above the applicable base rate | |||||||
Term A-1 Loan [Member] | Beginning on December 2025 [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Debt Instrument, Periodic Payment | $ 625,000 | |||||||
Term A-1 Loan [Member] | Beginning on December 2028 [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Debt Instrument, Periodic Payment | $ 937,500 | |||||||
Beginning on December 2025 [Member] | Delayed Draw Term Loan [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Debt Instrument Periodic Payment Principal In Percentage | 1.25% | |||||||
Revolving Credit Facility [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | |||||||
Long-Term Line of Credit | 19,885,082 | |||||||
Interest Rate Swap [Member] | First IRSA With Co Bank [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Derivative, Notional Amount | $ 10,950,800 | $ 16,137,500 | ||||||
Debt, Weighted Average Interest Rate | 4.36% | |||||||
Interest Rate Swap [Member] | Second IRSA CoBank [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Derivative, Notional Amount | $ 30,693,138 | $ 42,000,000 | ||||||
Debt, Weighted Average Interest Rate | 2.69% | |||||||
PPP Loan [Member] | ||||||||
LONG-TERM DEBT (Details) [Line Items] | ||||||||
Proceeds from Loans | $ 2,889,000 | |||||||
Gain (Loss) on Forgiveness of Debt | $ 2,912,433 |
LONG-TERM DEBT (Details) - Long
LONG-TERM DEBT (Details) - Long-term debt - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long Term Debt | $ 78,552,197 | $ 47,626,616 |
Less: Amount due within one year | (4,610,400) | |
Net of Current Portion of Unamortized Loan Fees | 98,556 | |
Total Long Term Debt | 78,552,197 | 43,114,772 |
Less: Unamortized Loan Fees | (1,332,885) | (353,158) |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 38,200,000 | |
Seven Year Quarterly Installments of $625,000 Beginning December 31 2025 & $937,500 Beginning December 31 2028 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 50,000,000 | |
Seven Year Quarterly Installments of 1.25% of Loan Balance Beginning December 31 2025 & 1.875% of Loan Balance Beginning December 31 2028 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 10,000,000 | |
Five Year Revolving Credit Facility of $30,000,000 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 19,885,082 | |
Seven Year Quarterly Installments of $1,152,600 Beginning September 30 2018 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 46,902,185 | |
Seven Year Revolving Credit Faiclity of $10,000,000 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | $ 1,077,589 |
LONG-TERM DEBT (Details) - Lo_2
LONG-TERM DEBT (Details) - Long-term debt (Parentheticals) - Secured Debt [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Seven Year Quarterly Installments of $625,000 Beginning December 31 2025 & $937,500 Beginning December 31 2028 [Member] | Beginning on December 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly Installments | $ 625,000 | |
Seven Year Quarterly Installments of $625,000 Beginning December 31 2025 & $937,500 Beginning December 31 2028 [Member] | Beginning on December 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly Installments | $ 937,500 | |
Seven Year Quarterly Installments of 1.25% of Loan Balance Beginning December 31 2025 & 1.875% of Loan Balance Beginning December 31 2028 [Member] | Beginning on December 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly Installments in Percentage | 1.25% | |
Seven Year Quarterly Installments of 1.25% of Loan Balance Beginning December 31 2025 & 1.875% of Loan Balance Beginning December 31 2028 [Member] | Beginning on December 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly Installments in Percentage | 1.875% | |
Five Year Revolving Credit Facility of $30,000,000 [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility | $ 30,000,000 | |
Seven Year Quarterly Installments of $1,152,600 Beginning September 30 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly Installments | 1,152,600 | |
Seven Year Revolving Credit Faiclity of $10,000,000 [Member] | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility | $ 10,000,000 |
LONG-TERM DEBT (Details) - Requ
LONG-TERM DEBT (Details) - Required principal payments | Dec. 31, 2022 USD ($) |
Required Principal Payments Abstract | |
2023 | |
2024 | |
2025 | 750,000 |
2026 | 2,984,569 |
2027 | $ 22,845,873 |
INTEREST RATE SWAPS (Details)
INTEREST RATE SWAPS (Details) - Interest Rate Swap [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Aug. 29, 2019 | Aug. 01, 2018 | |
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Interest Rate Derivative Assets, at Fair Value | $ 2,214,462 | $ 883,365 | ||
Deferred Income Tax Expense (Benefit) | 632,007 | 252,112 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1,582,455 | $ 631,253 | ||
First IRSA With Co Bank [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Variable Interest Rate | 25% | |||
Derivative, Notional Amount | $ 16,137,500 | |||
Second IRSA CoBank [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Notional Amount | $ 42,000,000 | |||
Term A-1 Loan [Member] | First IRSA With Co Bank [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Notional Amount | $ 10,950,800 | |||
Derivative Instrument Maturity Date | Jul. 31, 2029 | |||
Derivative Instrument Interest Rate Effective Percentage Description | 4.36% (SOFR Base Rate of 2.96% plus1.40% Base Rate Margin) | |||
Term A-1 Loan [Member] | Second IRSA CoBank [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative, Notional Amount | $ 30,693,138 | |||
Derivative Instrument Maturity Date | Jul. 31, 2029 | |||
Derivative Instrument Interest Rate Effective Percentage Description | 2.69% (SOFR Base Rate of 1.29% plus1.40% Base Rate Margin) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Examination Tax Positions Recognition Likelihood Threshold Percentage | 50% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 19,787 | $ 38,673 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 3,518 | $ 4,102 |
INCOME TAXES (Details) - Income
INCOME TAXES (Details) - Income taxes recorded - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes currently payable | ||
Federal | $ (50,330) | $ 560,808 |
State | 380,082 | 1,199,569 |
Deferred Income Taxes | 2,368,911 | 1,971,596 |
Total Income Tax Expense | $ 2,698,663 | $ 3,731,973 |
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, 2022 | Dec. 31, 2021 | |
AReconciliation Of The Beginning And Ending Amount Of Total Unrecognized Benefits Abstract | ||
Balance, beginning of year | $ 38,673 | $ 44,155 |
Balance, end of year | 19,787 | 38,673 |
Increases related to prior year tax positions | ||
Decreases related to prior year tax positions | (18,886) | (5,482) |
Increases related to current year tax positions | ||
Settlements |
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, 2022 | Dec. 31, 2021 | |
The Differences Between The Statutory Federal Tax Rate And The Effective Tax Rate Abstract | ||
Statutory Tax Rate | 21% | 21% |
Effect of: | ||
State Income Taxes Net of Federal Tax Benefit | 8.17% | 6.72% |
Forgiveness of PPP Loan | (3.83%) | |
Permanent Differences and Other, Net | (1.90%) | (0.54%) |
Effective tax rate | 27.27% | 23.35% |
INCOME TAXES (Details) - Deferr
INCOME TAXES (Details) - Deferred income taxes and unrecognized tax benefits - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets | ||
Accrued Expenses | $ (382,546) | $ (415,464) |
Deferred Compensation | (118,265) | (131,412) |
Other | (106,371) | (122,939) |
Unrealized Loss on SWAP | (252,112) | |
State NOL | (19,668) | |
Federal NOL | (3,472,536) | |
Leases | (394,878) | (321,530) |
Total Deferred Tax Assets | (4,494,264) | (1,243,457) |
Deferred Tax Liabilities | ||
Fixed Assets | 21,076,220 | 14,921,908 |
Intangible Assets | 3,591,783 | 4,124,935 |
Investments | 1,322,296 | 1,180,314 |
Unrealized Gain on SWAP | 632,007 | |
Contract Assets | 226,698 | 189,089 |
Leases | 382,790 | 311,711 |
Total Deferred Tax Liabilities: | 27,231,794 | 20,727,957 |
Total Net Deferred Taxes | $ 22,737,530 | $ 19,484,500 |
INCENTIVE AND RETIREMENT PLANS
INCENTIVE AND RETIREMENT PLANS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 15, 2023 | |
INCENTIVE AND RETIREMENT PLANS (Details) [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 402,398 | $ 397,064 | |
2006 Plan [Member] | |||
INCENTIVE AND RETIREMENT PLANS (Details) [Line Items] | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 200,000 | ||
Employees Incentive Plan , Percentage of Compensation in Lieu of Cash | 50% | ||
Management Incentive Plan, Percentage of Compensation in Lieu of Cash | 50% | ||
Subsequent Event [Member] | 2006 Plan [Member] | |||
INCENTIVE AND RETIREMENT PLANS (Details) [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 155,399 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 31, 2022 USD ($) |
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |
Capital Budget | $ 49.3 |
Outstanding Commitments for Material [Member] | |
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |
Other Commitment | 10.6 |
Outstanding Contract [Member] | |
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |
Other Commitment | $ 19.1 |
NONCASH ACTIVITIES (Details)
NONCASH ACTIVITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Noncash Investing Abstract | ||
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | $ 5,279,044 | $ 1,710,509 |
Noncash Financing Activities Related to Grants Awarded | $ 1,501,850 | $ 169,369 |
OTHER INVESTMENTS (Details)
OTHER INVESTMENTS (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Other Investments [Abstract] | |
Gain (Loss) on Sale of Other Investments | $ 217,876 |
GUARANTEES (Details)
GUARANTEES (Details) | Dec. 31, 2022 USD ($) |
Guarantees [Abstract] | |
Guaranty Liabilities | $ 169,565 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Mar. 16, 2023 | |
Omnibus Stock Plan [Member] | ||
STOCK BASED COMPENSATION (Details) [Line Items] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 625,000 | |
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 21.2 | |
Subsequent Event [Member] | Omnibus Stock Plan [Member] | ||
STOCK BASED COMPENSATION (Details) [Line Items] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 403,994 | |
Share-Based Payment Arrangement, Option [Member] | ||
STOCK BASED COMPENSATION (Details) [Line Items] | ||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 21.2 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 3.24 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 299,434 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 3 months 10 days |
STOCK BASED COMPENSATION (Det_2
STOCK BASED COMPENSATION (Details) - RSUs currently issued and outstanding - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
STOCK BASED COMPENSATION (Details) - RSUs currently issued and outstanding [Line Items] | ||
Issued, Closing Stock Price (in Dollars per share) | $ 21.9 | |
Issued, Vesting Date | Dec. 31, 2023 | |
Exercised, Closing Stock Price (in Dollars per share) | $ 17.18 | |
Exercised, Vesting Date | Dec. 31, 2022 | |
Share-Based Payment Arrangement, Tranche One [Member] | ||
STOCK BASED COMPENSATION (Details) - RSUs currently issued and outstanding [Line Items] | ||
Exercised, Closing Stock Price (in Dollars per share) | $ 23.67 | |
Exercised, Vesting Date | Dec. 31, 2020 | |
Share-Based Payment Arrangement, Tranche Two [Member] | ||
STOCK BASED COMPENSATION (Details) - RSUs currently issued and outstanding [Line Items] | ||
Exercised, Closing Stock Price (in Dollars per share) | $ 21.75 | |
Exercised, Vesting Date | Dec. 31, 2021 | |
Time Based RSUs [Member] | ||
STOCK BASED COMPENSATION (Details) - RSUs currently issued and outstanding [Line Items] | ||
Balance | 9,440 | 7,638 |
Balance | 3,364 | 9,440 |
Issued | 3,364 | |
Forfeited | (1,685) | |
Exercised | (4,391) | |
Time Based RSUs [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||
STOCK BASED COMPENSATION (Details) - RSUs currently issued and outstanding [Line Items] | ||
Exercised | ||
Time Based RSUs [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||
STOCK BASED COMPENSATION (Details) - RSUs currently issued and outstanding [Line Items] | ||
Exercised | (1,562) | |
Targeted Performance Based RSUs [Member] | ||
STOCK BASED COMPENSATION (Details) - RSUs currently issued and outstanding [Line Items] | ||
Balance | 13,270 | 9,611 |
Balance | 4,701 | 13,270 |
Issued | 5,247 | |
Forfeited | (4,325) | |
Exercised | (4,244) | |
Targeted Performance Based RSUs [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||
STOCK BASED COMPENSATION (Details) - RSUs currently issued and outstanding [Line Items] | ||
Exercised | (1,588) | |
Targeted Performance Based RSUs [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||
STOCK BASED COMPENSATION (Details) - RSUs currently issued and outstanding [Line Items] | ||
Exercised |
STOCK BASED COMPENSATION (Det_3
STOCK BASED COMPENSATION (Details) - Number of Options awarded | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Payment Arrangement, Tranche One [Member] | |
STOCK BASED COMPENSATION (Details) - Number of Options awarded [Line Items] | |
Options, Issued Closing Stock Price (in Dollars per share) | $ / shares | $ 21.2 |
Options Issued Vesting Date | Apr. 11, 2023 |
Share-Based Payment Arrangement, Tranche Two [Member] | |
STOCK BASED COMPENSATION (Details) - Number of Options awarded [Line Items] | |
Options, Issued Closing Stock Price (in Dollars per share) | $ / shares | $ 21.2 |
Options Issued Vesting Date | Apr. 11, 2024 |
Share-Based Payment Arrangement, Tranche Three [Member] | |
STOCK BASED COMPENSATION (Details) - Number of Options awarded [Line Items] | |
Options, Issued Closing Stock Price (in Dollars per share) | $ / shares | $ 21.2 |
Options Issued Vesting Date | Apr. 11, 2025 |
Restricted Stock Units (RSUs) [Member] | |
STOCK BASED COMPENSATION (Details) - Number of Options awarded [Line Items] | |
Balance | |
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |
STOCK BASED COMPENSATION (Details) - Number of Options awarded [Line Items] | |
Options Issued | 40,577 |
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |
STOCK BASED COMPENSATION (Details) - Number of Options awarded [Line Items] | |
Options Issued | 40,583 |
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | |
STOCK BASED COMPENSATION (Details) - Number of Options awarded [Line Items] | |
Options Issued | 40,583 |
Balance | 121,743 |
STOCK BASED COMPENSATION (Det_4
STOCK BASED COMPENSATION (Details) - Grant date fair value of employee stock option awards assumptions | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Grant Date Fair Value Of Employee Stock Option Awards Assumptions Abstract | |
Exercise Price (in Dollars per share) | $ 21.2 |
Risk-Free Rate of Interest | 1.515% |
Expected Term (Years) | 10 years |
Expected Stock Price Volatility | 18.10% |
Dividend Yield | 2.44% |
STOCK BASED COMPENSATION (Det_5
STOCK BASED COMPENSATION (Details) - Summaries of Company`s employee stock option activity - Share-Based Payment Arrangement, Option [Member] | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
STOCK BASED COMPENSATION (Details) - Summaries of Company`s employee stock option activity [Line Items] | |
Outstanding, Number of Shares | shares | |
Outstanding, Weighted Average Exercise Price | $ / shares | |
Outstanding, Aggregate Intrinsic Value | $ | |
Granted, Number of Shares | shares | 121,743 |
Granted, Weighted Average Exercise Price | $ / shares | $ 21.2 |
Granted, Weighted Average Remaining Term | 9 years 3 months 10 days |
Forfeited, Number of Shares | shares | |
Forfeited, Weighted Average Exercise Price | $ / shares | |
Outstanding, Number of Shares | shares | 121,743 |
Outstanding, Weighted Average Exercise Price | $ / shares | $ 21.2 |
Outstanding, Weighted Average Remaining Term | 9 years 3 months 10 days |
Outstanding, Aggregate Intrinsic Value | $ | |
Options Vested and Exercisable, Number of Shares | shares | |
Options Vested and Exercisable, Weighted Average Exercise Price | $ / shares | |
Options Vested and Exercisable, Aggregate Intrinsic Value | $ |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | Dec. 31, 2022 |
Fiber Comm [Member] | |
SEGMENT INFORMATION (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 20% |
Broadband Visions [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% |
Fiber Minnesota LLC [Member] | |
SEGMENT INFORMATION (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 7.54% |
BROADBAND GRANTS (Details)
BROADBAND GRANTS (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
December 2022 [Member] | |
BROADBAND GRANTS (Details) [Line Items] | |
Number Of Grants | 4 |
Grants Receivable (in Dollars) | $ 8,594,688 |
Project Cost (in Dollars) | $ 18,139,749 |
Matching Fund Percentage Provided By Grantee | 55% |
December 2022 [Member] | Minimum [Member] | |
BROADBAND GRANTS (Details) [Line Items] | |
Grants Percentage | 45% |
December 2022 [Member] | Maximum [Member] | |
BROADBAND GRANTS (Details) [Line Items] | |
Grants Percentage | 50% |
January 2020 Grant [Member] | |
BROADBAND GRANTS (Details) [Line Items] | |
Grants Percentage | 36.50% |
Grants Receivable (in Dollars) | $ 730,000 |
Project Cost (in Dollars) | $ 2,000,000 |
Matching Fund Percentage Provided By Grantee | 63.50% |
Proceeds from Grantors (in Dollars) | $ 724,465 |
January 2021 Grant [Member] | |
BROADBAND GRANTS (Details) [Line Items] | |
Number Of Grants | 5 |
Grants Percentage | 35.40% |
Grants Receivable (in Dollars) | $ 1,918,037 |
Project Cost (in Dollars) | $ 5,419,617 |
Matching Fund Percentage Provided By Grantee | 64.60% |
Proceeds from Grantors (in Dollars) | $ 396,360 |
Transactions with equity meth_2
Transactions with equity method investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Related Party Transaction, Amounts of Transaction | $ 501,187 | $ 643,855 |
Related Party Transaction, Purchases from Related Party | $ 496,028 | $ 544,931 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - $ / shares | Mar. 06, 2023 | Jan. 12, 2023 |
SUBSEQUENT EVENTS (Details) [Line Items] | ||
Common Stock, Dividends, Per Share, Declared | $ 14 | |
ImOn Communications [Member] | ||
SUBSEQUENT EVENTS (Details) [Line Items] | ||
Equity Method Investment, Ownership Percentage | 100% |