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Contract Assets and Contract Liabilities
 3 Months Ended
Mar. 31, 2022
Contract Assets and Contract Liabilities [Abstract]  
Contract Assets and Contract Liabilities

5.

Contract Assets and Contract Liabilities  

 

Costs and estimated earnings on uncompleted contracts, which represent contract assets and contract liabilities, consisted of the following at March 31, 2022 and December 31, 2021:

 

 

 

2022

 

 

2021

 

 

Costs incurred on uncompleted contracts  

 

$

7,004,438

 

 

$

4,272,425

 


Provision for loss on uncompleted contracts

391,703


2,238,578

Estimated earnings to date on uncompleted contracts

 

 

(3,731,057

 )

 

 

(3,156,377

 )

Gross contract assets

 

 

3,665,084

 

 

 

3,354,626

 


Less: billings to date

 

 

(8,737,401

 )

 

 

(4,750,289

)


    Net contract assets (liabilities) on uncompleted contracts

 

$

(5,072,317

 )

 

$

(1,395,663

 )
             

The above amounts are included in the accompanying condensed consolidated balance sheets under the following captions at March 31, 2022 and December 31, 2021. 

 

 

2022

 

 

2021

 

 

Contract assets  

 

$

133,395

 

 

$

41,916

 


Contract liabilities

 

 

(5,205,712

 )

 

 

(1,437,579

 )

 

    Net contract assets (liabilities)

 

$

(5,072,317

 )

 

$

(1,395,663

 )

 

Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. The Company periodically evaluates and revises its estimates and makes adjustments when they are considered necessary.