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Contract Assets and Contract Liabilities
 6 Months Ended
Jun. 30, 2025
Contract Assets and Contract Liabilities [Abstract]  
Contract Assets and Contract Liabilities
6. Contract Assets and Contract Liabilities

 

Costs and estimated earnings on uncompleted contracts, which represent contract assets and contract liabilities, consisted of the following at June 30, 2025 and December 31, 2024:

 

   2025   2024 
Costs incurred on uncompleted contracts  $2,129,843   $3,161,295 
Provision for loss on uncompleted contracts   
—
    
—
 
Estimated earnings to date on uncompleted contracts   (1,025,044)   (687,903)
Gross contract assets   1,104,799    2,473,392 
Less: billings to date   (1,532,152)   (3,066,938)
Net contract liabilities on uncompleted contracts  $(427,353)  $(593,546)

 

The above amounts are included in the accompanying condensed consolidated balance sheets under the following captions at June 30, 2025 and December 31, 2024. 

 

   2025   2024 
Contract assets  $130,798   $2,536 
Contract liabilities   (558,151)   (596,082)
Net contract liabilities on uncompleted contracts  $(427,353   $(593,546)

 

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.

 

Additionally, at June 30, 2025 contract liabilities include $553,350 of advanced payments from customers on certain contracts.