XML 37 R24.htm IDEA: XBRL DOCUMENT

CONTRACT ASSETS AND LIABILITIES

3 Months Ended

Dec. 31, 2023

NOTE 17 – CONTRACT ASSETS AND LIABILITIES

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:

	December 31, 2023			December 31, 2022

Costs incurred on uncompleted contracts	$	11,900,894		$	2,779,408
Estimated gross profit		3,020,654			1,145,663
		14,921,548			3,925,071
Applicable billings to date		(14,216,138	)		(4,811,777	)
Net billings in excess of costs, Ending balance	$	705,410		$	(886,706	)

	December 31, 2023			September 30, 2023
Included in the accompanying balance sheet under the following captions

Contract assets, net
Costs in excess, net	$	1,593,142		$	1,680,071
Conditional retainage, net		100,993			59,130
Total contract assets, net	$	1,694,135		$	1,739,201

Contract liabilities
Billings in excess		(988,725	)		(980,319	)
Total contract liabilities	$	(988,725	)	$	(980,319	)

	December 31, 2022			September 30, 2022
Included in the accompanying balance sheet under the following captions

Contract assets, net
Costs in excess, net	$	521,172		$	781,819
Total contract assets, net	$	521,172		$	781,819

Contract liabilities
Billings in excess		(1,407,878	)		(369,890	)
Total contract liabilities	$	(1,407,878	)	$	(369,890	)

For the three months ended December 31, 2023 and 2022, the Company recognized revenue of $791,161 and $352,847, respectively, that was previously included in the beginning balance of contract liabilities.