Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2026

Revenue Recognition

See Note 2 – “Revenue Recognition” for a discussion of our revenue recognition policies.

Cost of Goods and Service [Policy Text Block]

Cost of Services (excluding depreciation and amortization)

Cost of services (excluding depreciation and amortization expense) includes all costs related to the delivery of communication services and products. These operating costs include all the costs of performing services and providing related products including engineering, network monitoring, and transportation costs.

Selling, General and Administrative Expenses, Policy [Policy Text Block]

Selling, General and Administrative Expenses

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.

Depreciation, Depletion, and Amortization [Policy Text Block]

Depreciation and Amortization Expense

We use the group life method (mass asset accounting) to depreciate the assets of our communications companies. Communications plant acquired in a given year is grouped into similar categories and depreciated over the remaining estimated useful life of the group. When an asset is retired, both the asset and the accumulated depreciation associated with that asset are removed from the books. Due to rapid changes in technology, selecting the estimated economic life of communications plant and equipment requires a significant amount of judgment. We periodically review data on expected utilization of new equipment, asset retirement activity, and net salvage values to determine adjustments to our depreciation rates. We have not made any significant changes to the lives of these assets in the two-year period ended June 30, 2026. Depreciation expense was $7,284,759 and $8,664,869 for the six months ended June 30, 2026, and 2025. The decrease in depreciation expense was primarily due to legacy copper plant assets becoming fully depreciated for the Scott-Rice Telephone Company (Scott-Rice) in 2025. We amortize our definite-lived intangible assets over their estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment.

Grant money received from governmental entities for reimbursement of capital expenditures is accounted for as a reduction from the cost of the asset. As the grant was to be used in the Company’s regulated network, the Company accounts for this funding as aid to construction as outlined in the Federal Communications Commission (FCC’s) Part 32 “Uniform System of Accounts for Telecommunications Companies.” The resulting balance sheet presentation reflects the Company’s net investment in the assets in property, plant, and equipment. Depreciation is calculated and recorded based on the reduced cost of the investment therefore the impact of prior grants received is reflected in earnings as a reduction in depreciation. Grant funds are shown as inflows in the financing activities section of the statements of cash flows.

Income Tax, Policy [Policy Text Block]

Income Taxes

The provision for income taxes consists of an amount for taxes currently payable and a provision for tax consequences deferred to future periods. Deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax basis. Significant components of our deferred taxes arise from differences (i) in the basis of property, plant, and equipment due to the use of accelerated depreciation methods for tax purposes, as well as (ii) in partnership investments and intangible assets due to the difference between book and tax basis. Our effective income tax rate is normally higher than the United States tax rate due to state income taxes and permanent differences.

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 June 30, 2026, and December 31, 2025, we had $0 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 twelve months.

We are primarily subject to United States, Minnesota, Iowa, Nebraska, North Dakota, and Wisconsin income taxes. Tax years subsequent to 2021 remain open to examination by federal and state tax authorities. Our policy is to recognize interest and penalties related to income tax matters as income tax expense. As of June 30, 2026, and December 31, 2025, we had $0 and $27,790 of interest or penalties paid, that related to income tax matters.

Earnings Per Share, Policy [Policy Text Block]

Earnings and Dividends Per Share

The basic and diluted net income per share is calculated as follows:

	Three Months Ended						Three Months Ended						Six Months Ended				Six Months Ended
	June 30, 2026						June 30, 2025						June 30, 2026				June 30, 2025
	Basic			Diluted			Basic			Diluted			Basic		Diluted		Basic		Diluted

Net Income (Loss)	$	(160,770	)	$	(160,770	)	$	(424,040	)	$	(424,040	)	$	1,417,668	$	1,417,668	$	604,880	$	604,880

Weighted-average common shares outstanding		5,238,264			5,569,881			5,202,957			5,471,088			5,226,806		5,553,058		5,190,567		5,448,085

Net income per share	$	(0.03	)	$	(0.03	)	$	(0.08	)	$	(0.08	)	$	0.27	$	0.26	$	0.12	$	0.11

The weighted-average shares outstanding, basic, and diluted, are calculated as follows:

	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2025
	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted

Weighted-average common shares outstanding		5,238,264		5,238,264		5,202,957		5,202,957		5,226,806		5,226,806		5,190,567		5,190,567

Dilutive RSU's/Options		-		331,617		-		268,131		-		326,252		-		257,518

Weighted-average common shares outstanding		5,238,264		5,569,881		5,202,957		5,471,088		5,226,806		5,553,058		5,190,567		5,448,085

Nuvera’s Board of Directors (BOD) reviews quarterly dividend declarations based on our anticipated earnings, capital requirements, and our operating and financial conditions.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Developments

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03 “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40)”. This accounting update requires disclosure of disaggregated expense in prescribed categories underlying any relevant income statement expense caption. The updated disclosure requirements are to be adopted for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently assessing the impact of adopting ASU 2024-03 on the consolidated financial statements and related disclosures. The Company expects the adoption of the standard to result in additional disaggregation of expense captions within its footnote disclosures.

In December 2025, the FASB issued ASU 2025-10, “Government Grants (Topic 832): Accounting for Government Grants received by Business Entities”. This accounting update establishes guidance for the recognition, measurement, presentation, and disclosure of government grants. The updated requirements are effective for public business entities for annual reporting periods beginning after December 15, 2028, and interim periods therein, with early adoption permitted. The Company is currently assessing the impact of adopting ASU 2025-10 on its consolidated financial statements.

The Company has implemented all, new applicable accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References + Details