Contract Assets and Contract Liabilities

6 Months Ended

Jun. 30, 2023

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 June 30, 2023 and December 31, 2022:

	2023			2022
Costs incurred on uncompleted contracts	$	12,765,232		$	13,730,177
Provision for loss on uncompleted contracts		—			—
Estimated earnings to date on uncompleted contracts		614,825			(2,160,085	)
Gross contract assets		13,380,057			11,570,092
Less: billings to date		(12,676,540	)		(11,970,979	)
Net contract assets/(liabilities) on uncompleted contracts	$	703,517		$	(400,887	)

The above amounts are included in the accompanying condensed consolidated balance sheets under the following captions at June 30, 2023 and December 31, 2022. 

	2023			2022
Contract assets	$	872,309		$	36,384
Contract liabilities		(168,792	)		(437,271	)
Net contract assets (liabilities)	$	703,517		$	(400,887	)

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.