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CONTRACT ASSETS AND LIABILITES

12 Months Ended

Sep. 30, 2023

NOTE 14 - CONTRACT ASSETS AND LIABILITES

Project contracts typically provide for a schedule of billings on percentage of completion of specific tasks inherent in the fulfillment of the Company’s performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in the statements of operations can and usually does differ from amounts that can be billed to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceeds cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in the balance sheets under the caption “Contract assets.” Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized are reflected as a current liability in the balance sheets under the caption “Contract liabilities.” Conditional retainage represents the portion of the contract price withheld until the work is substantially complete for assurance of the Company’s obligations to complete the job.

The following is a summary of the Company’s uncompleted contracts:

	For the year ended
	September 30, 2023			September 30, 2022

Costs incurred on uncompleted contracts	$	12,523,552		$	2,152,087
Estimated gross profit		3,085,350			851,469
Total		15,608,902			3,003,556
Applicable billings to date		(14,850,020	)		(2,591,627	)
Total	$	758,882		$	411,929

	September 30, 2023			September 30, 2022			September 30, 2021
Included in the accompanying balance sheet under the following captions

Contract assets	$	1,739,201		$	781,819		$	1,148,243

Contract liabilites		(980,319	)		(369,890	)		(986,399	)
Total	$	758,882		$	411,929		$	161,844