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CONTRACT ASSETS AND LIABILITIES

6 Months Ended

Mar. 31, 2024

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 condensed consolidated 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 condensed consolidated 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:

	March 31, 2024			September 30, 2023

Costs incurred on uncompleted contracts	$	11,582,989		$	12,523,552
Estimated gross profit		2,816,002			3,085,350
		14,398,991			15,608,902
Applicable billings to date		(14,318,721	)		(14,850,020	)
Net billings in excess of costs, Ending balance	$	80,270		$	758,882

For the three and six months ended March 31, 2024 and 2023, the Company recognized revenue of $95,759 and $9,030, and $886,920 and $361,887, respectively, that was previously included in the beginning balance of contract liabilities.