Costs and Estimated Earnings on Uncompleted Contracts

12 Months Ended

Dec. 31, 2012

Costs and Estimated Earnings On Uncompleted Contracts [Abstract]

Costs and Estimated Earnings on Uncompleted Contracts

5.     Costs and Estimated Earnings on Uncompleted Contracts

Costs and estimated earnings on uncompleted contracts consist of the following at December 31, 2012 and 2011:

	2012			2011
Costs incurred on uncompleted contracts	$	177,529		$	424,477
Provision for loss on uncompleted contracts		(6,680	)		-
Estimated earnings		19,516			41
		190,365			424,518
Less:  billings to date		(223,678	)		(358,064	)
	$	(33,313	)	$	66,454

The above amounts are included in the accompanying balance sheets under the following captions at December 31, 2012 and 2011.

	2012			2011
Costs and estimated earnings in excess of billings on uncompleted contracts	$	36,476		$	66,454
Billings in excess of cost and estimated earnings on uncompleted contracts		(69,789	)		-
	$	(33,313	)	$	66,454

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.

As of December 31, 2012, the Company has accrued anticipated losses on uncompleted contracts in the amount of $6,860. This amount is included in cost of revenue on the accompanying consolidated statements of operations and comprehensive loss and is included in accounts payable and accrued expenses on the accompanying consolidated balance sheets.