Contract Assets and Contract Liabilities

12 Months Ended

Dec. 31, 2023

Contract Assets and Contract Liabilities

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 December 31,:

	2023			2022				2021
Costs incurred on uncompleted contracts	$	20,213,733		$	13,730,177		$	4,272,425
Provision for loss on uncompleted contracts		—			—			2,238,578
Estimated earnings (losses) to date on uncompleted contracts		(968,040	)		(2,160,085	)		(3,156,377	)
Gross contract assets		19,245,693			11,570,092			3,354,626
Less: billings to date		(20,601,946	)		(11,970,979	)		(4,750,289	)
Net contract liabilities on uncompleted contracts	$	(1,356,253	)	$	(400,887	)	$	(1,395,663	)

The above amounts are included in the accompanying consolidated balance sheets under the following captions at December 31,:

	2023			2022				2021
Contract assets	$	10,745		$	36,384		$	41,916
Contract liabilities		(1,366,998	)		(437,271	)		(1,437,579	)
Net contract liabilities	$	(1,356,253	)	$	(400,887	)	$	(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.