10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal quarter ended September 30, 2019

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM _____________ TO _____________

Commission File Number 000-56012

 

 (Exact name of registrant as specified in its charter)  

Nevada	47-2200506
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)
12343 Hymeadow Drive, Suite 3-A  Austin, Texas	78750
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (512) 407-2623

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes ☒  No  ☐   

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes ☒  No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 

Large accelerated filer  ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth  ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes  ☐  No   ☒

State the number of shares of the issuer’s common stock outstanding, as of the latest practicable date: 14,585,000 shares of common stock are issued and outstanding as of November 12, 2019.

TABLE OF CONTENTS
		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets (unaudited)	1
	Consolidated Statements of Operations (unaudited)	2
	Consolidated Statements of Stockholders’ Equity (Deficit) (unaudited)	3
	Consolidated Statements of Cash Flows (unaudited)	4
	Notes to Consolidated Financial Statements (unaudited)	5
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19
Item 4.	Controls and Procedures	20
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	25
Item 6.	Exhibits	25

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements 

Reliant Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

	September 30,		December 31,
	2019		2018
ASSETS
Current Assets
Cash	$	246,754	$	181,093
Real estate inventory		17,424		—
Federal income tax receivable		10,000		10,000
Prepaid and other current assets		—		1,500
Contract assets		29,076		9,776
Total current assets		303,254		202,369
Equipment, net of accumulated depreciation of $25,893 and $20,812 at September 30, 2019 and December 31, 2018, respectively		9,033		14,114
Total Assets	$	312,287	$	216,483
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	97,619	$	56,859
Contract liabilities		78,364		89,991
Current portion of note payable		—		5,992
Due to related party		—		5,000
Total current liabilities		175,983		157,842
Long-term note payable, net of current portion		—		7,256
Total Liabilities		175,983		165,098
Commitments
Stockholders’ Equity
Common stock, 70,000,000 shares authorized, $.001 par value, 14,585,000 issued and outstanding as of September 30, 2019 and December 31, 2018		14,585		14,585
Additional paid-in capital		43,365		43,365
Accumulated deficit		78,354		(6,565	)
Total Stockholders’ Equity		136,304		51,385
Total Liabilities and Stockholders’ Equity	$	312,287	$	216,483

The accompanying notes are an integral part of these unaudited consolidated financial statements.

1 

Reliant Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2019			2018			2019			2018
Revenue	$	591,891		$	438,977		$	1,310,232		$	1,093,763
Cost of goods sold		(401,284	)		(287,232	)		(869,962	)		(725,895	)
Gross Margin		190,607			151,745			440,270			367,868
Operating Expenses
General and administrative		110,378			85,985			355,036			268,030
Total Operating Expenses		(110,378	)		(85,985	)		(355,036	)		(268,030	)
Income (Loss) From Operations		80,229			65,760			85,234			99,838
Other income (expense)
Interest income		32			18			73			39
Interest expense		(127	)		(170	)		(388	)		(558	)
Total other income (expense)		(95	)		(152	)		(315	)		(519	)
Income (Loss) before income taxes		80,134			65,608			84,919			99,319
Provision for Income Tax		—			—			—			—
Net Income (Loss)	$	80,134		$	65,608		$	84,919		$	99,319
Net Income (Loss) Per Share - Basic and Diluted	$	0.01		$	0.00		$	0.01		$	0.01
Weighted Average Common Shares Outstanding		14,585,000			14,585,000			14,585,000			14,585,000

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2 

Reliant Holdings, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity (Deficit)

For the nine months ended September 30, 2019 and 2018

	Preferred Stock				Common Stock				Additional Paid in		Accumulated
	Shares		Par Value		Shares		Par Value		Capital		Deficit			Total
Balance December 31, 2018		—	$	—		14,585,000	$	14,585	$	43,365	$	(6,565	)	$	51,385
Net income		—		—		—		—		—		6,340			6,340
Balance March 31, 2019		—		—		14,585,000		14,585		43,365		(225	)		57,725
Net loss		—		—		—		—		—		(1,555	)		(1,555	)
Balance June 30, 2019		—		—		14,585,000		14,585		43,365		(1,780	)		56,170
Net income		—		—		—		—		—		80,134			80,134
Balance September 30, 2019		—	$	—		14,585,000	$	14,585	$	43,365	$	78,354		$	136,304
Balance December 31, 2017		—	$	—		14,585,000	$	14,585	$	43,365	$	(94,843	)	$	(36,893	)
Net loss		—		—		—		—		—		(9,715	)		(9,715	)
Balance March 31, 2018		—		—		14,585,000		14,585		43,365		(104,558	)		(46,608	)
Net income		—		—		—		—		—		43,426			43,426
Balance June 30, 2018		—		—		14,585,000		14,585		43,365		(61,132	)		(3,182	)
Net income		—		—		—		—		—		65,608			65,608
Balance September 30, 2018		—	$	—		14,585,000	$	14,585	$	43,365	$	4,476		$	62,426

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3 

Reliant Holdings, Inc. and Subsidiaries  

Consolidated Statements of Cash Flows  

(Unaudited)

	For the Nine Months Ended
	September 30,
	2019			2018
Operating Activities
Net income	$	84,919		$	99,319
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		5,081			5,081
Changes in operating assets and liabilities:
Accounts receivable		—			(2,430	)
Real estate inventory		(17,424	)		—
Prepaid and other current assets		1,500			—
Contract assets		(19,300	)		15,088
Contract liabilities		(11,627	)		66,299
Accounts payable and accrued liabilities		40,760			15,067
Net Cash Provided By Operating Activities		83,909			198,424
Financing Activities
Payments on related party advances		(5,000	)		—
Payments on note payable		(13,248	)		(4,278	)
Net Cash Used In Financing Activities		(18,248	)		(4,278	)
Net change in Cash		65,661			194,146
Cash - Beginning of Period		181,093			18,252
Cash - End of Period	$	246,754		$	212,398
Supplemental Disclosures
Interest paid	$	368		$	956
Income taxes paid	$	—		$	—

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4 

Reliant Holdings, Inc. and Subsidiaries  

Notes to the Consolidated Financial Statements 

For the three and nine months ended September 30, 2019 and 2018

(unaudited)

Note 1. The Company and Summary of Significant Accounting Policies

The Company

Reliant Holdings, Inc. (the “Company”) was formed as a Nevada corporation on May 19, 2014. On May 23, 2014, Reliant Holdings, Inc., along with Reliant Pools, Inc., formerly Reliant Pools, G.P., which was formed in September 2013 (“Reliant Pools”) and the shareholders of Reliant Pools, entered into an Agreement for the Exchange of common stock whereby Reliant Pools, Inc. became a wholly-owned subsidiary of Reliant Holdings, Inc. Reliant Holdings, Inc. designs, and installs swimming pools. On October 10, 2018, the Company incorporated a new wholly-owned subsidiary in Texas, Reliant Custom Homes, Inc. During the third quarter of 2019, the Company purchased land on which it intends to construct a custom home. The Company is headquartered in Austin, Texas.

Basis of Presentation

The financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

The consolidated financial statements and related disclosures as of September 30, 2019 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, these unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These unaudited financial statements should be read in conjunction with the audited financial statements of the Company for the years ended December 31, 2018 and 2017 included in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on April 1, 2019. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year.

New Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize assets and liabilities for most leases. ASU 2016-02 is effective for public entity financial statements for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. ASU 2016-02 was further clarified and amended within ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20 which included provisions that would provide us with the option to adopt the provisions of the new guidance using a modified retrospective transition approach, without adjusting the comparative periods presented. We adopted the new standard on January 1, 2019 and used the effective date as our date of initial application under the modified retrospective approach. We elected the short-term lease recognition exemption for all of our leases that qualify. This means, for those leases we will not recognize right-of-use (RoU) assets or lease liabilities. The implementation of this new standard has no impact on our financial statements.

 5

Note 2. Accounts Receivable

Accounts receivable consisted of the following:

	September 30,			December 31,
	2019			2018
Contract receivables	$	3,000		$	3,000
Less: Allowance for doubtful accounts		(3,000	)		(3,000	)
	$	—		$	—

The Company recognized no bad debt expense during the nine months ended September 30, 2019 and 2018.

Note 3. Contracts in Process

The net asset (liability) position for contracts in process consisted of the following:

	September 30,			December 31,
	2019			2018
Costs on uncompleted contracts	$	430,204		$	169,683
Estimated earnings		213,407			76,486
		643,611			246,169
Less: Progress billings		(692,899	)		(326,384	)
	$	(49,288	)	$	(80,215	)

The net asset (liability) position for contracts in process is included in the accompanying consolidated balance sheets as follows:

	September 30, 2019			December 31, 2018
Costs and estimated earnings in excess of billings on uncompleted contracts	$	29,076		$	9,776
Billings in excess of costs and estimated earnings on uncompleted contracts		(78,364	)		(89,991	)
	$	(49,288	)	$	(80,215	)

Note 4. Concentration of Risk

The Company had gross revenue of $1,310,232 and $1,093,763 for the nine months ended September 30, 2019 and 2018, respectively. The Company had four customers representing more than 10% of gross revenue, and combined 48% of revenue for the nine months ended September 30, 2019. The Company had three customers representing more than 10% of gross revenue, and combined 34% of revenue for the nine months ended September 30, 2018.

Note 5. Equity

From January 2016 to September 2016, the Company sold 885,000 shares of restricted common stock for $44,250, or $0.05 per share in a private offering pursuant to a private placement memorandum. Purchasers in the offering included Lilia Chavez, the mother of Michael Chavez, the Company’s then President and then sole director (10,000 shares for $500), Alexander Spohn, the adult son of Becky Spohn, the Company’s then Controller (5,000 shares for $250), and Phyllis Laws, the mother of Becky Spohn, the Company’s then Controller (5,000 shares for $250).

 6

In September 2016, the Company discovered that the investors in the January 2016 to September 2016 offering may not have been provided all of the information and materials (including current audited financial statements), as is required under the Securities Act in order to claim an exemption from registration pursuant to Rule 506 of the Securities Act. The Company believes that all such transactions still complied with, and were exempt from registration under Section 4(a)(2) of the Securities Act because the recipients acquired the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof; the securities were offered without any general solicitation by the Company or the Company’s representatives; no underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions; the securities sold are subject to transfer restrictions, and the certificates evidencing the securities (or book entry issuances) contain an appropriate legend stating that such securities have not been registered under the Securities Act and may not be offered or sold absent registration or pursuant to an exemption therefrom; and the securities were not registered under the Securities Act and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act and any applicable state securities laws.

Nevertheless, based on the above, the Company offered the January 2016 to September 2016 purchasers of the Company’s common stock the right to rescind their previous common stock acquisitions and receive, in exchange for any shares relinquished to the Company, a payment equal to their original purchase price plus interest at the applicable statutory rate in the state in which they reside. The rescission offer expired at 5:00 pm (CST) on October 26, 2016. None of the prior purchasers opted to rescind their prior purchases in connection with the rescission offer.

During the first quarter of fiscal 2017, the Company learned that Michael Chavez, the former President and former sole director, was barred from association with any FINRA member in any capability. Mr. Chavez similarly became aware of the FINRA bar at the same time. Pursuant to Rule 506(d), Rule 506 of the Securities Act, is not available for a sale of securities if among other persons, any director or executive officer of an issuer has been subject to certain disqualifying events after September 23, 2013, including suspension or expulsion from membership in a self-regulatory organization (SRO), such as FINRA. However, in the event the disqualifying event occurred prior to September 23, 2013, the issuer is not prohibited from relying on Rule 506, provided that pursuant to Rule 506(e) of the Securities Act, an issuer is required to furnish to each purchaser, a reasonable time prior to sale, a description in writing of any matters that would have triggered disqualification under Rule 506(d)(1), but occurred before September 23, 2013.

As Mr. Chavez’s FINRA bar constituted a disqualifying event under Rule 506(d), the Company was required to furnish to each purchaser of shares of the Company, a reasonable time prior to sale, a description in writing of such event. The Company did not do that, because as described above, the Company and Mr. Chavez only became aware of the FINRA bar after the close of the offering. Notwithstanding the fact that the Company was not aware of Mr. Chavez’s FINRA bar, the Company determined that the failure to provide such information may prohibit the Company from relying on a Rule 506 exemption for the prior issuances and sales of shares. The Company believes that all such transactions still complied with, and were exempt from registration under Section 4(a)(2) of the Securities Act, because the recipients acquired the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof; the securities were offered without any general solicitation by us or the Company’s representatives; no underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions, the securities sold/issued were subject to transfer restrictions, and the certificates evidencing the securities (or book entry issuances) contain an appropriate legend stating that such securities have not been registered under the Securities Act and may not be offered or sold absent registration or pursuant to an exemption therefrom; and the securities were not registered under the Securities Act and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act and any applicable state securities laws.

 7

Nevertheless, management determined that the Company would offer rescission to all of its stockholders in April 2017. In connection therewith, in April 2017, the Company offered every stockholder of the Company’s common stock the right to rescind their previous purchases and acquisitions and to receive, in exchange for any shares relinquished to us, a payment equal to their original purchase price or consideration provided, plus interest at the applicable statutory rate in the state in which they reside. The rescission offer expired at 5:00 pm (CST) on April 29, 2017. None of the Company’s stockholders opted to rescind their prior purchase/acquisitions in connection with the rescission offer.

The federal securities laws and certain state securities laws do not expressly provide that a rescission offer will terminate a purchaser’s right to rescind a sale of securities that was not registered under the relevant securities laws as required. Accordingly, the Company may continue to be potentially liable under certain securities laws for the offer and sale of the shares sold and issued between May 2014 and September 2016, totaling $57,950 of securities in aggregate, along with statutory interest on such shares, even after the Company completed the rescission offers.

This amount is recorded in equity in the accompanying September 30, 2019 and December 31, 2018 balance sheets. This will be evaluated at each reporting period for reclassification to a liability if a rescission request is made.

Effective on November 3, 2017, Michael Chavez, the Company’s former sole director, Chief Executive Officer and President of the Company, entered into a Voting Agreement with Elijah May, the Company’s then Chief Operating Officer (COO), and current sole director, Chief Executive Officer and President as well as the Company’s COO (the “Voting Agreement”), resulting in a change in control of the Company.

Pursuant to the Voting Agreement, Mr. Chavez provided complete authority to Mr. May to vote the 4,000,000 shares of common stock which Mr. Chavez then held (and any other securities of the Company obtained by Mr. Chavez in the future) at any and all meetings of stockholders of the Company and via any written consents. Those 4,000,000 shares represented 27.4% of the Company’s common stock as of the parties’ entry into the Voting Agreement and together with the 4,500,000 shares held by Mr. May prior to the parties’ entry into the Voting Agreement, constitute 58.3% of the Company’s total outstanding shares of common stock. The Voting Agreement has a term of ten years, through November 3, 2027, but can be terminated at any time by Mr. May and terminates automatically upon the death of Mr. May. In connection with his entry into the Voting Agreement, Mr. Chavez provided Mr. May an irrevocable voting proxy to vote the shares covered by the Voting Agreement. Additionally, during the term of such agreement, Mr. Chavez agreed not to transfer the shares covered by the Voting Agreement except pursuant to certain limited exceptions. Due to the Voting Agreement, Mr. May holds voting control over the Company due to his ability to vote 58.3% of the Company’s total outstanding shares of voting stock.

Effective on November 3, 2017, the Board of Directors of the Company and the Board of Directors of Reliant Pools Inc., the Company’s wholly-owned subsidiary, each then consisting solely of Mr. Chavez, increased the number of members of the Board of Directors of each company from one to two and appointed Mr. May as a member of the Board of Directors of each company to fill the vacancy created by such vacancy.

Note 6. Commitments and Contingencies

The Company leases approximately 1,000 square feet of office space in Austin, Texas. The lease was to expire in September 2017 with a monthly rent of $1,695. On September 5, 2017 and effective on September 30, 2017, the Company extended its office space lease from October 1, 2017 to September 30, 2018. In connection with the extension, the Company agreed to a rental increase to $1,745 per month. On October 15, 2018, the Company extended the office space lease from October 1, 2018 through September 30, 2019 for a rental rate of $1,795 per month. On August 30, 2019, and effective on September 30, 2019, the Company extended the office space lease again, from October 1, 2019, through September 30, 2020, for a rental rate of $1,845 per month.

Lease expense was $17,145 and $16,805 for the nine months ended September 30, 2019 and 2018, respectively.

 8

On October 19, 2018, a former client, Paul T. Denucci filed an Original Petition naming the Company, Elijah May, our sole officer and director and Michael Chavez, our prior Chief Executive Officer and former sole director, as defendants. The Original Petition was originally filed in Williamson County, Texas, provided the proceeding was subsequently moved to the County Court of Travis County, Texas (County Court 2 – Cause No. C-1-CV-18-011465). The Original Petition alleged breach of contract and alleged defects in the pool which the Company built on Mr. Denucci’s behalf. The Original Petition seeks damages in an amount sufficient to allow Mr. Denucci to repair the alleged defects in the pool. We deny Mr. Denucci’s claims and intend to vigorously defend ourselves and our current and former officers against such claims. Trial has been set for December 2019.

On December 21, 2018, a former client, Brian Moats filed an Original Petition naming Reliant Pools as a defendant in a suit filed in the County Court at Law No. 2 for Travis County, Texas (Cause No. C-1-CV-18-012062). The suit alleges that the Company failed to install a French drain under the pool as required by the terms of the contract, alleges causes of action of breach of express warranty and breach of contract and seeks damages of between $100,000 and $200,000. We deny Mr. Moats’ claims and intend to vigorously defend ourselves against such claims. Trial is set for the first quarter of 2020.

Note 7. Related Party Transactions

As of September 30, 2019 and December 31, 2018, Mr. Chavez was owed $0 and $5,000, respectively, from the Company. The advance was due on demand, unsecured, repaid in the third quarter of 2019 and had no stated interest rate.

Note 8. Note Payable

	September 30, 2019		December 31, 2018
Term note with a bank secured by truck, payable in monthly installments of $537, including interest at 4.35% through February 11, 2021	$	—	$	13,248
Total long-term debt		—		13,248
Less: current portion		—		(5,992	)
Long-term debt net of current portion	$	—	$	7,256

Note 9. Real Estate Inventory

As of September 30, 2019, real estate inventory consists of one lot in Lago Vista, Texas.

Real estate inventory is stated at cost unless the carrying amount is determined not to be recoverable. As of September 30, 2019, the Company has not begun development on the land purchased.

 9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this Report. These factors include:

● the need for additional funding;

● our lack of a significant operating history;

● the fact that our sole officer and director has significant control over our voting stock;

● the loss of key personnel or failure to attract, integrate and retain additional personnel;

● corporate governance risks;

● economic downturns;

● the level of competition in our industry and our ability to compete;

● our ability to respond to changes in our industry;

● our ability to protect our intellectual property and not infringe on others’ intellectual property;

● our ability to scale our business;

● our ability to maintain supplier relationships;

● our ability to obtain and retain customers;

● our ability to execute our business strategy in a very competitive environment;

● trends in and the market for recreational pools and services;

● lack of insurance policies;

● dependence on a small number of customers;

● changes in laws and regulations;

● the market for our common stock;

● our ability to effectively manage our growth;

● dilution to existing stockholders;

● costs and expenses associated with being a public company;

● our ability to construct, market and sell a planned custom home;

● economic downturns both in the United States and globally;

● lawsuits and regulatory matters, the outcomes thereof, and negative perceptions in connection therewith, involving the Company and/or its current or former officers, directors and significant shareholders;

● risk of increased regulation of our operations; and

● other risk factors included under “Risk Factors“ below and under “Item 1A. Risk Factors“ in our latest Annual Report on Form 10-K.

You should read the matters described and incorporated by reference in “Risk Factors“ and the other cautionary statements made in this Report, and incorporated by reference herein, as being applicable to all related forward-looking statements wherever they appear in this Report. We cannot assure you that the forward-looking statements in this Report will prove to be accurate and therefore prospective investors are encouraged not to place undue reliance on forward-looking statements. Other than as required by law, we undertake no obligation to update or revise these forward-looking statements, even though our situation may change in the future.

 10

This information should be read in conjunction with the interim unaudited financial statements and the notes thereto included in this Quarterly Report on Form 10-Q, and the audited financial statements and notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations“ contained in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission on April 1, 2019 (the “Annual Report”).

Certain capitalized terms used below and otherwise defined below, have the meanings given to such terms in the footnotes to our consolidated financial statements included above under “Part I - Financial Information” – “Item 1. Financial Statements“.

In this Quarterly Report on Form 10-Q, we may rely on and refer to information regarding the industries in which we operate in general from market research reports, analyst reports and other publicly available information. Although we believe that this information is reliable, we cannot guarantee the accuracy and completeness of this information, and we have not independently verified any of it.

Unless the context requires otherwise, references to the “Company,” “we,” “us,” “our,” “Reliant”, “Reliant Holdings” and “Reliant Holdings, Inc.” refer specifically to Reliant Holdings, Inc. and its consolidated subsidiary.

In addition, unless the context otherwise requires and for the purposes of this Report only:

● “Exchange Act” refers to the Securities Exchange Act of 1934, as amended;

● “SEC” or the “Commission” refers to the United States Securities and Exchange Commission; and

● “Securities Act” refers to the Securities Act of 1933, as amended.

Where You Can Find Other Information

We file annual, quarterly, and current reports, proxy statements and other information with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC like us at http://www.sec.gov (our filings can be found at https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001682265). Copies of documents filed by us with the SEC are also available from us without charge, upon oral or written request to our Secretary, who can be contacted at the address and telephone number set forth on the cover page of this Report.

Corporate Information

Our principal executive offices are located at 12343 Hymeadow Drive, Suite 3-A, Austin, Texas 78750, and our telephone number is (512) 407-2623. Our website address is www.reliantholdingsinc.com. The information on, or that may be accessed through, our website is not incorporated by reference into this Report and should not be considered a part of this Report.

Organizational History

We were formed as a Nevada corporation on May 19, 2014.

On May 23, 2014, we, along with Reliant Pools, Inc. (“Reliant Pools”) and the stockholders of Reliant Pools, entered into an Agreement for the Exchange of Common Stock (the “Exchange Agreement”). Pursuant to the Exchange Agreement, the stockholders of Reliant Pools exchanged 2.1 million shares of common stock, representing 100% of the outstanding common stock of Reliant Pools, for 2.1 million shares of our common stock (the “Exchange”). As a result of the Exchange, Reliant Pools became our wholly-owned subsidiary. The President of Reliant Pools, and its largest stockholder at the time of the Exchange was Michael Chavez, our then President, then Chief Executive Officer and then sole director. The following shares of restricted common stock were issued in connection with the Exchange: 900,000 shares of common stock to Michael Chavez, our then President, then Chief Executive Officer and then sole director; 750,000 shares of common stock to Elijah May, our current Chief Executive Officer and sole director; and 450,000 shares of common stock to Becky Spohn, our former Controller.

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Reliant Pools was originally formed as a Texas General Partnership (Reliant Pools, G.P.) in September 2013, and was owned by Mr. Chavez, Mr. May, Ms. Spohn, and a third party, who subsequently was unable to perform the services required for him to vest his interest, which interest was subsequently terminated, leaving Mr. Chavez, Mr. May and Ms. Spohn as the sole owners of Reliant Pools, G.P. In May 2014, Reliant Pools, G.P. was converted from a Texas General Partnership to a Nevada corporation, Reliant Pools, Inc., with the same ownership as described above at the time of the Exchange.

On October 10, 2018, the Company incorporated a new wholly-owned subsidiary in Texas, Reliant Custom Homes, Inc. The Company is exploring opportunities to expand operations in the Austin, Texas area as a custom home builder. To date, the Company has engaged a consultant in connection with custom home builder services, and has purchased land located in Lago Vista, Texas, in the Texas Hill Country, outside of Austin, Texas, on which it intends to construct a custom home which it then plans to sell. Current plans are for the custom home to be approximately 2,300 square feet, and the Company plans to obtain bank financing for the construction costs associated with the build, which funding has not yet been obtained and may not be available on favorable terms, if at all.

Description of Business Operations

We, through our wholly-owned subsidiary, Reliant Pools (which has been in operation since September 2013), are an award winning, custom, swimming pool construction company located in the greater Austin, Texas market. In the future we also plan to offer residential swimming pool maintenance services. We assist customers with the design of, and then construct, recreational pools which blend in with the surroundings, geometric pools which complement the home’s architecture and water features (e.g., waterfalls and negative edge pools) which provide the relaxing sounds of moving water. We won four Association of Pool & Spa Professionals (ARSP) Region 3 Design Awards for our designs in 2016 and one award in 2017. Moving forward, we plan on expanding our operations through an accretive business model in which we plan to acquire competitors in both the custom pool construction and pool maintenance/service industries locally, regionally, and nationally, funding permitting.

To date, the majority of our growth has been through referral business. We offer a wide variety of pool projects based upon price and the desires of the client. When our sales personnel meet with a prospective customer, we provide them with an array of projects from the basic pool building to more high-end projects that may include waterfalls, mason work, backyard lighting and in-ground spas to highlight the outdoor living experience.

Plan of Operations

We had working capital of $127,271 as of September 30, 2019. With our current cash on hand, expected revenues, and based on our current average monthly expenses, we do not anticipate the need for additional funding in order to continue our operations at their current levels, and to pay the costs associated with being a public company, for the next 12 months. We may require additional funding in the future to expand or complete acquisitions and anticipate needing to borrow additional funding in the future to complete our planned custom home construction. The sources of this capital are expected to be equity investments, notes payable or bank funding (which is planned to be the source of our construction funding in connection with our planned custom home build). Our plan for the next twelve months is to continue using the same marketing and management strategies and continue providing a quality product with excellent customer service while also seeking to expand our operations organically or through acquisitions as funding and opportunities arise, and, as discussed above, we have also purchased a homesite which we intend to construct a custom home on which we then plan to sell. As our business continues to grow, customer feedback will be integral in making small adjustments to improve the product and overall customer experience. In the event we require additional funding, we plan to raise that through the sale of debt or equity, in a public or private offering, which may not be available on favorable terms, if at all, and may, if sold, cause significant dilution to existing stockholders. We may also use stock as consideration for acquisitions in the future, which may cause dilution to existing stockholders. If we are unable to access additional capital moving forward, it may hurt our ability to grow and to generate future revenues. 

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RESULTS OF OPERATIONS

For the Three Months Ended September 30, 2019 Compared to the Three Months Ended September 30, 2018

We had revenue of $591,891 for the three months ended September 30, 2019, compared to revenue of $438,977 for the three months ended September 30, 2018, an increase of $152,914 or 35% from the prior period. Revenue increased mainly due to an increase in pool count during the comparable periods and general timing of contracts. We completed two pools during the three months ended September 30, 2019 compared to completing six pools during the three months ended September 30, 2018. We recognize revenue based on the percentage that a job is complete rather than upon completion. As such total revenue recognized for each period may be different than the product of total completed pools during each period multiplied by the average pool contract price of each pool during such period, as the construction of certain pools may have started in one period and ended in another.

We had cost of goods sold of $401,284 for the three months ended September 30, 2019, compared to cost of goods sold of $287,232 for the three months ended September 30, 2018, an increase of $114,052 or 40% from the prior period, mainly due to the increase in projects during the period as disclosed above.

Cost of goods sold increased mainly due to the number of pools completed combined with the increase in other costs, including labor. In addition, we have seen increased costs decking and pool equipment costs associated with higher end projects and increases in the average cost of constructed pools during the current period compared to the last. The expenses which attributed to the increase in cost of goods sold for the three months ended September 30, 2019, compared to the three months ended September 30, 2018, included:

	For the Three		For the Three
	Months Ended		Months Ended
Cost of Goods Sold Expense	September 30, 2019		September 30, 2018		Increase / (Decrease)			Percentage Change
Cost of decking	$	65,191	$	35,239	$	29,952			85.0	%
Plaster used in the construction of pools		24,605		34,719		(10,114	)		(29.1	%)
Gunite used in the construction of pools		39,047		31,494		7,553			24.0	%
Pool equipment used to filter and circulate the water used in our pools		63,570		46,378		17,192			37.1	%
Masonry, stone and tile installed in and around our pools and coping expenses associated therewith		33,612		54,014		(20,402	)		(37.8	%)
Excavation and steel expenses		54,506		48,335		6,171			12.8	%
Other, including labor		120,753		37,053		83,700			225.9	%
Total	$	401,284	$	287,232	$	114,052			39.7	%

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Cost of goods sold represent our pool construction costs, including raw materials, outsourced labor, installed equipment, tile and coping expenses, excavation costs and permit expenses. We anticipate our cost of goods sold increasing in approximate proportion to increases in revenue and decreasing in approximate proportion to decreases in revenue, moving forward, as our cost of goods sold are factored into the price we charge for our pools and represent the cost of pool construction, the majority of which is not fixed and varies depending on the total number of pools and construction projects we complete during each period and the size and complexity of such projects. Labor costs associated with the cost of labor used in construction of pools decreased due to the general timing of plumbing and electrical services.

We had a gross margin of $190,607 for the three months ended September 30, 2019, compared to a gross margin of $151,745 for the three months ended September 30, 2018, an increase of $38,862 or 26% from the prior period due to the reasons described above. Gross margin as a percentage of revenue was 32% and 35% for the three months ended September 30, 2019 and 2018, respectively.

We had operating expenses consisting solely of general and administrative expenses of $110,378 for the three months ended September 30, 2019, compared to operating expenses consisting solely of general and administrative expenses of $85,985 for the three months ended September 30, 2018. Operating expenses increased $24,393 or 29% from the prior period mainly due to increases in commissions on sales and professional fees. General and administrative expenses include the salaries of our employees, commissions and the fees paid to contract employees.

We had interest income of $32 for the three months ended September 30, 2019, compared to interest income of $18 for the three months ended September 30, 2018. Interest income was in connection with interest generated by funds the Company maintained in its savings account.

We had interest expense of $127 and $170, for the three months ended September 30, 2019 and 2018, respectively, due to interest paid in connection with the purchase of a truck used in our business, as described in greater detail under “Liquidity and Capital Resources“ below.

We had net income of $80,134 for the three months ended September 30, 2019, compared to net income of $65,608 for the three months ended September 30, 2018, an increase in net income of $14,526 or 22%, mainly due to the increase in revenue, offset by the increase in cost of goods sold and increase in general and administrative expenses, each as described above.

For the Nine months Ended September 30, 2019 Compared to the Nine months Ended September 30, 2018

We had revenue of $1,310,232 for the nine months ended September 30, 2019, compared to revenue of $1,093,763 for the nine months ended September 30, 2018, an increase of $216,469 or 20% from the prior period. Revenue increased mainly due to larger pools being completed during the current period compared to the prior period. We completed eleven pools during the nine months ended September 30, 2019 compared to completing twelve pools during the nine months ended September 30, 2018. We recognize revenue based on the percentage that a job is complete rather than upon completion. As such, total revenue recognized for each period may be different than the product of total completed pools during each period multiplied by the average pool contract price of each pool during such period, as the construction of certain pools may have started in one period and ended in another.

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We had cost of goods sold of $869,962 for the nine months ended September 30, 2019, compared to cost of goods sold of $725,895 for the nine months ended September 30, 2018, an increase of $144,067 or 20% from the prior period, mainly due to the increase in projects during the period as disclosed above.

Cost of goods sold increased mainly due to the number of pools completed combined with the increase in decking cost and other costs, including labor, as a result of higher end projects being completed and increases in the average cost of constructed pools during the current period, compared to the last. The expenses which attributed to the increase in cost of goods sold for the nine months ended September 30, 2019, compared to the nine months ended September 30, 2018, included: 

	For the Nine Months Ended		For the Nine Months Ended
Cost of Goods Sold Expense	September 30, 2019		September 30, 2018		Increase /  (Decrease)			Percentage Change
Cost of decking	$	153,463	$	75,011	$	78,452			104.6	%
Plaster used in the construction of pools		67,152		64,861		2,291			3.5	%
Gunite used in the construction of pools		87,578		97,044		(9,466	)		(9.8	%)
Pool equipment used to filter and circulate the water used in our pools		137,215		115,201		22,014			19.1	%
Masonry, stone and tile installed in and around our pools and coping expenses associated therewith		88,798		116,274		(27,476	)		(23.6	%)
Excavation and steel expenses		116,201		114,016		2,185			1.9	%
Other, including labor		219,555		143,488		76,067			53.0	%
Total	$	869,962	$	725,895	$	144,067			19.8	%

Cost of goods sold represent our pool construction costs, including raw materials, outsourced labor, installed equipment, tile and coping expenses, excavation costs and permit expenses. We anticipate our cost of goods sold increasing in approximate proportion to increases in revenue and decreasing in approximate proportion to decreases in revenue, moving forward, as our cost of goods sold are factored into the price we charge for our pools and represent the cost of pool construction, the majority of which is not fixed and varies depending on the total number of pools and construction projects we complete during each period and the size and complexity of such projects. Labor costs associated with the cost of labor used in construction of pools decreased due to the general timing of plumbing and electrical services.

We had a gross margin of $440,270 for the nine months ended September 30, 2019, compared to a gross margin of $367,868 for the nine months ended September 30, 2018, an increase of $72,402 or 20% from the prior period due to the reasons described above. Gross margin as a percentage of revenue was 34% for both for the nine months ended September 30, 2019 and 2018.

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We had operating expenses consisting solely of general and administrative expenses of $355,036 for the nine months ended September 30, 2019, compared to operating expenses consisting solely of general and administrative expenses of $268,030 for the nine months ended September 30, 2018. Operating expenses increased $87,006 or 33% from the prior period mainly due to increases in commissions on sales and professional fees. General and administrative expenses include the salaries of our employees, commissions and the fees paid to contract employees.

We had interest income of $73 for the nine months ended September 30, 2019, compared to interest income of $39 for the nine months ended September 30, 2018. Interest income was in connection with interest generated by funds the Company maintained in its savings account.

We had interest expense of $388 and $558, for the nine months ended September 30, 2019 and 2018, respectively, due to interest paid in connection with the purchase of a truck used in our business, as described in greater detail under “Liquidity and Capital Resources” below.

We had net income of $84,919 for the nine months ended September 30, 2019, compared to net income of $99,319 for the nine months ended September 30, 2018, a decrease of $14,400 or 15%, mainly due to the increase in general and administrative expenses and the increase in cost of goods sold, offset by the increase in revenues, each as described above.

Liquidity and Capital Resources

We had total assets of $312,287 as of September 30, 2019, consisting of total current assets of $303,254, which included cash of $246,754, real estate inventory of $17,424, federal income tax receivable of $10,000, $29,076 of contract assets, and equipment, net of accumulated depreciation, of $9,033. Federal income tax receivable relates to a $10,000 payment made by the Company to the United States Treasury in March 2016, in anticipation of Federal income tax the Company estimated would be owed at the end of the 2016 calendar year. There was no tax due for the nine months ended September 30, 2019, due to the utilization of a net loss carryforward. The Company currently estimates that it will not owe regular federal income tax for the year ended December 31, 2019 and has recorded the payment as an asset as of September 30, 2019. Included in equipment and land as of September 30, 2019 is the value of the land which the Company acquired in the third quarter of 2019, which it plans to build a custom home on.

We had total liabilities of $175,983 as of September 30, 2019, which included total current liabilities of $175,983, consisting of accounts payable and accrued liabilities of $97,619, contract liabilities, relating to billings in excess of costs and estimated earnings on uncompleted jobs of $78,364.

As of December 31, 2018, we owed $13,248 under a note payable issued in connection with the purchase of a truck used in our business which has since been repaid in full. We also owed $5,000 in related party advances relating to amounts advanced to the Company by Michael Chavez, the Company’s former Chief Executive Officer, which amount was due on demand, unsecured and had no stated interest rate, which amount was repaid in full during the third quarter of 2019.

We had working capital of $127,271 as of September 30, 2019, compared to working capital of $44,527 as of December 31, 2018.

We had $83,909 of net cash provided by operating activities for the nine months ended September 30, 2019, which was mainly due to an increase in accounts payable and accrued liabilities of $40,760 and $84,919 of net income, compared to $198,424 of net cash provided by operating activities for the nine months ended September 30, 2018, due mainly to increases in billings in excess of costs and estimated earnings on uncompleted contracts and net income of $99,319.

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We had $18,248 of net cash used in financing activities for the nine months ended September 30, 2019, which was due to payments on note payable ($13,248) and payments on related party advances (as discussed above)($5,000). We had $4,278 of cash used in financing activities for the nine months ended September 30, 2018, which was due solely to payments on note payable.

We do not currently have any additional commitments or identified sources of additional capital from third parties or from our officers, directors or majority stockholders. Additional financing may not be available on favorable terms, if at all.

In the future, we may be required to seek additional capital by selling additional debt or equity securities, or otherwise be required to bring cash flows in balance when we approach a condition of cash insufficiency. The sale of additional equity or debt securities, if accomplished, may result in dilution to our then stockholders. Financing may not be available in amounts or on terms acceptable to us, or at all. In the event we are unable to raise additional funding and/or obtain revenues sufficient to support our expenses, we may be forced to curtail or abandon our business operations, and any investment in the Company could become worthless.

Critical Accounting Policies:

Emerging Growth Company. Section 107 of the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

Revenue Recognition

On January 1, 2018, we adopted Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“new revenue standard”) to all contracts using the modified retrospective method. The adoption of the new revenue standard had no material impact on our consolidated financial statements as it did not require a change in revenue recognition. As such, comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct.

Performance Obligations Satisfied Over Time

Revenue for our contracts that satisfy the criteria for over time recognition is recognized as the work progresses. The majority of our revenue is derived from construction contracts and projects that typically span between 4 to 12 months. Our construction contracts will continue to be recognized over time because of the continuous transfer of control to the customer as all of the work is performed at the customer’s site and, therefore, the customer controls the asset as it is being constructed. Contract costs include labor, material, and indirect costs.

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Performance Obligations Satisfied at a Point in Time

Revenue for our contracts that do not satisfy the criteria for over time recognition is recognized at a point in time. Substantially all of our revenue recognized at a point in time is for work performed for pool maintenance or repairs. Unlike our construction contracts that use a cost-to-cost input measure for performance, the pool maintenance or repairs utilize an output measure for performance based on the completion of a unit of work. The typical time frame for completion of these services is less than one month. Upon fulfillment of the performance obligation, the customer is provided an invoice (or equivalent) demonstrating transfer of control or completion of service to the customer. We believe that point in time recognition remains appropriate for these contracts and will continue to recognize revenues upon completion of the performance obligation and issuance of an invoice.

Contract modifications are routine in the performance of our contracts. Contracts are often modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract.

Backlog

On September 30, 2019, we had approximately $797,000 of remaining performance obligations on our construction contracts, which we also refer to as backlog. We expect to recognize our backlog as revenue during the remainder of 2019 and early 2020.

Contract Estimates

Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract.

Contract estimates are based on various assumptions to project the outcome of future events. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, and the performance of subcontractors.

Variable Consideration

Transaction price for our contracts may include variable consideration, which includes increases to transaction price for approved and unapproved change orders, claims and incentives, and reductions to transaction price for liquidated damages. Change orders, claims and incentives are generally not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as a modification of the existing contract and performance obligation. We estimate variable consideration for a performance obligation at the most likely amount to which we expect to be entitled (or the most likely amount we expect to incur in the case of liquidated damages), utilizing estimation methods that best predict the amount of consideration to which we will be entitled (or will be incurred in the case of liquidated damages). We include variable consideration in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. The effect of variable consideration on the transaction price of a performance obligation is recognized as an adjustment to revenue on a cumulative catch-up basis. To the extent unapproved change orders and claims reflected in transaction price (or excluded from transaction price in the case of liquidated damages) are not resolved in our favor, or to the extent incentives reflected in transaction price are not earned, there could be reductions in, or reversals of, previously recognized revenue. No adjustment on any one contract was material to our consolidated financial statements for the nine months ended September 30, 2019.

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Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) on the consolidated balance sheet. On our construction contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., biweekly or monthly) or upon achievement of contractual milestones. Generally, billing occurs prior to revenue recognition, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period.

The Company recognizes revenue from the design and installation of swimming pools.

Accounts Receivable and Allowances. The Company does not charge interest to its customers and carries its customers’ receivables at their face amounts, less an allowance for doubtful accounts. Included in accounts receivable are balances billed to customers pursuant to retainage provisions in certain contracts that are due upon completion of the contract and acceptance by the customer, or earlier as provided by the contract. Based on the Company’s experience in recent years, the majority of customer balances at each balance sheet date are collected within twelve months. As is common practice in the industry, the Company classifies all accounts receivable, including retainage, as current assets. The contracting cycle for certain long-term contracts may extend beyond one year, and accordingly, collection of retainage on those contracts may extend beyond one year.

The Company grants trade credit, on a non-collateralized basis (with the exception of lien rights against the property in certain cases), to its customers and is subject to potential credit risk related to changes in business and overall economic activity. The Company analyzes specific accounts receivable balances, historical bad debts, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. In the event that a customer balance is deemed to be uncollectible, the account balance is written-off against the allowance for doubtful accounts.

Classification of Construction Contract-related Assets and Liabilities. Costs and estimated earnings in excess of billings on uncompleted contracts (Contract assets) are presented as a current asset in the accompanying consolidated balance sheets, and billings in excess of costs and estimated earnings on uncompleted contracts (Contract liabilities) are presented as a current liability in the accompanying consolidated balance sheets. The Company’s contracts vary in duration, with the duration of some larger contracts exceeding one year. Consistent with industry practices, the Company includes the amounts realizable and payable under contracts, which may extend beyond one year, in current assets and current liabilities. The vast majority of these balances are settled within one year.

Equipment. Equipment, consisting mainly of a truck, is stated at cost. The Company depreciates the cost of equipment using the straight-line method over the estimated useful lives of the assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations for the period. The cost of maintenance and repairs is charged to operations as incurred; significant renewals improvements are capitalized. Depreciation expense was approximately $1,694 for the three months ended and $5,081 for the nine months ended, September 30, 2019 and 2018, respectively. The estimated useful life of the truck is five years.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We have established and maintain a system of disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in our reports filed with the Securities and Exchange Commission pursuant to the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Commission and that such information is accumulated and communicated to our management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), to allow timely decisions regarding required disclosures.

Management, consisting of our CEO and CFO, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. As of September 30, 2019, based on the evaluation of these disclosure controls and procedures, our CEO and CFO has concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in our reports filed with the Securities and Exchange Commission pursuant to the Exchange Act, is recorded properly, processed, summarized and reported within the time periods specified in the rules and forms of the Commission and that such information is accumulated and communicated to our management, including our CEO and CFO, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

We regularly review our system of internal control over financial reporting to ensure we maintain an effective internal control environment. There were no changes in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Although we may, from time to time, be involved in litigation and claims arising out of our operations in the normal course of business, we are not currently a party to any material legal proceeding, except as set forth below. In addition, we are not aware of any material legal or governmental proceedings against us, or contemplated to be brought against us, except as set forth below.

On October 19, 2018, a former client, Paul T. Denucci filed an Original Petition naming the Company, Elijah May, our sole officer and director and Michael Chavez, our prior Chief Executive Officer and former sole director, as defendants. The Original Petition was originally filed in Williamson County, Texas, provided the proceeding was subsequently moved to the County Court of Travis County, Texas (County Court 2 – Cause No. C-1-CV-18-011465). The Original Petition alleged breach of contract and alleged defects in the pool which the Company built on Mr. Denucci’s behalf. The Original Petition seeks damages in an amount sufficient to allow Mr. Denucci to repair the alleged defects in the pool. We deny Mr. Denucci’s claims and intend to vigorously defend ourselves and our current and former officers against such claims. Trial is set for December 2019.

On December 21, 2018, a former client, Brian Moats, filed an Original Petition naming Reliant Pools as a defendant in a suit filed in the County Court at Law No. 2 for Travis County, Texas (Cause No. C-1-CV-18-012062). The suit alleges that the Company failed to install a French drain under the pool as required by the terms of the contract, alleges causes of action of breach of express warranty and breach of contract and seeks damages of between $100,000 and $200,000. We deny Mr. Moats’ claims and intend to vigorously defend ourselves against such claims. Trial is set for the first quarter of 2020.

The Company is unable to determine the estimate of the probable or reasonable possible loss or range of losses arising from the above legal proceedings.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the SEC on April 1, 2019, under the heading “Item 1A. Risk Factors“, except as discussed below, and investors should review the risks provided in the Annual Report and below, prior to making an investment in the Company. The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those described in the Annual Report, under “Item 1A. Risk Factors“ and below, any one or more of which could, directly or indirectly, cause the Company’s actual financial condition and operating results to vary materially from past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, operating results and stock price.

Risks Related to Our Business Operations and Our Industry:

A major safety incident relating to our operations could be costly in terms of potential liabilities and reputational damage.

Construction sites are inherently dangerous and pose certain inherent health and safety risks to construction workers, employees and other visitors. Due to health and safety regulatory requirements, health and safety performance is important to the success of our construction activities. Any failure in health and safety performance may result in penalties for non-compliance with relevant regulatory requirements, and a failure that results in a major or significant health and safety incident is likely to be costly and could expose us to claims resulting from personal injury. Such a failure could generate significant negative publicity and have a corresponding impact on our reputation, our relationships with relevant regulatory agencies or governmental authorities, and our ability to attract customers and employees, which in turn could have a material adverse effect on our business, financial condition and operating results.

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Our backlog may not be realized or may not result in revenue or profit.

As of September 30, 2019, we had approximately $797,000 of remaining performance obligations on our construction contracts, which we also refer to as backlog. We expect to recognize our backlog as revenue during the remainder of 2019 and early 2020. However, most of our contracts may be terminated by our customers on short notice. Reductions in backlog due to cancellation by a customer, or for other reasons, could significantly reduce the revenue that we actually receive from contracts in our backlog. In the event of a project cancellation, we may be reimbursed for certain costs, but we typically have no contractual right to the total revenue reflected in our backlog. Projects may remain in our backlog for extended periods of time.

Given these factors, our backlog at any point in time may not accurately represent the revenue that we expect to realize during any period, and our backlog as of the end of a fiscal year may not be indicative of the revenue we expect to earn in the following fiscal year. Inability to realize revenue from our backlog could have an adverse effect on our business.

A significant amount of our revenues are due to only a small number of customers, and if we were to lose any of those customers, our results of operations would be adversely affected.

The Company had gross revenue of $1,310,232 and $1,093,763 for the nine months ended September 30, 2019 and 2018, respectively. The Company had four customers representing more than 10% of gross revenue, and combined 48% of revenue for the nine months ended September 30, 2019. The Company had three customers representing more than 10% of gross revenue, and combined 34% of revenue for the nine months ended September 30, 2018. The Company had gross revenue of $1,506,830 and $1,178,054 for the years ended December 31, 2018 and 2017, respectively. The Company had no customers representing approximately 10% of gross revenues for the year ended December 31, 2018 and had two customers representing more than 10% of gross revenue, and a combined 23% of revenue for the year ended December 31, 2017 and no customers representing approximately 10% of gross revenues for the year ended December 31, 2016.

As a result, the majority of our revenues are due to only a small number of customers, and we anticipate this trend continuing moving forward. As a result, in the event our customers do not pay us amounts owed, terminate work in progress or we are unable to find new customers moving forward, it could have a materially adverse effect on our results of operations and could force us to curtail or abandon our current business operations.

Risks Relating to Our Planned Custom Homebuilder Operations:

A downturn in the homebuilding market could adversely affect our planned operations as a custom home builder.

In the third quarter of 2019 we acquired land on which we plan to build a custom home, which we then plan to sell. Demand for new and custom homes is sensitive to changes in economic conditions such as the level of employment, consumer confidence, consumer income, the availability of financing and interest rate levels. Reduced demand for new homes could have a negative effect on us and our ability to sell the planned custom home.

We may experience significant costs in connection with the construction of our planned custom home.

The cost of materials and labor necessary to complete the construction of our planned custom home are subject to inflationary pressures, supply and demand and the health of the economy in general. Higher than budgeted costs could have a material adverse effect on our results of operations and cause us to lose money on the construction and sale of the planned custom home.

22 

An increase in mortgage interest rates could decrease a buyer’s ability or desire to purchase our planned custom home.

When interest rates increase, the cost of owning a new home increases, which usually reduces the number of potential buyers who can afford to purchase a home. The cost of mortgage financing could result in a decline in the demand for our planned custom home, and as result, make it harder for us to sell such home, or require us to reduce the proposed sale price of such home.

Shortages in the availability of subcontract labor may delay construction schedules and increase our costs.

We anticipate depending on the availability of, and satisfactory performance by, consultants and subcontractors for the design and construction of our planned custom home. The cost of labor may be adversely affected by shortages of qualified trades people, changes in laws and regulations relating to union activity and changes in immigration laws and trends in labor migration. Shortages of skilled labor are anticipated to lead to increased labor costs. In the future there may not be a sufficient supply of, or satisfactory performance by, these unaffiliated third-party consultants and subcontractors, which could have a material adverse effect on our business.

Products supplied to us and work done by subcontractors can expose us to risks that may adversely affect our business.

We plan to rely on subcontractors to perform the actual construction of our custom home, and in many cases, to select and obtain building materials. Despite detailed specifications and quality control procedures, in some cases, subcontractors may use improper construction processes or defective materials. Defective products can result in the need to perform extensive repairs. The cost of complying with our warranty obligations may be significant if we are unable to recover the cost of repairs from subcontractors, materials suppliers and insurers. We may also suffer damage to our reputation, and may be exposed to possible liability, if subcontractors fail to comply with applicable laws, including laws involving things that are not within our control.

Natural disasters and severe weather conditions could delay our planned custom home construction and increase costs.

Our planned custom homebuilding operations are anticipated to be conducted in areas that are subject to natural disasters, including hurricanes, earthquakes, droughts, floods, wildfires and severe weather. The occurrence of natural disasters or severe weather conditions may delay the construction of our planned custom home, increase costs by damaging inventories and lead to shortages of labor and materials in areas affected by the disasters, and can negatively impact the demand for new homes in affected areas. Any natural disasters or similar events effecting our planned homebuilding operations may have a material adverse effect on our results of operations.

Increases in interest rates and decreases in mortgage availability may make purchasing a home more difficult or less desirable and may negatively impact our ability to sell our planned custom home.

In general, housing demand is adversely affected by increases in interest rates and a lack of availability of mortgage financing. We anticipate any buyer of our planned custom home to finance their home purchase through a third-party lender providing mortgage financing. If mortgage interest rates increase and, consequently, the ability of a prospective buyer to finance home purchases is adversely affected, our ability to sell our planned custom home may be adversely affected and the impact may be material.

23 

If we are unable to successfully compete in the highly competitive housing industry, our financial results and growth may suffer.

The housing industry is highly competitive. We plan to compete in such industry with national, regional and local developers and homebuilders, resale of existing homes, condominiums and available rental housing. Some of our competitors have significantly greater financial resources and some may have lower costs than we do. Competition among homebuilders of all sizes is based on a number of interrelated factors, including location, reputation, amenities, design, innovation, quality and price. Competition is expected to be intense. If we are unable to successfully compete, our financial results and growth could suffer.

Expirations, amendments or changes to tax laws, incentives or credits may negatively impact our business.

Under previous tax law, certain expenses of owning a home, including mortgage loan interest costs and real estate taxes, generally were deductible expenses for the purpose of calculating an individual’s federal, and in some cases state, tax liability. However, the Tax cuts and Jobs Act (the “Tax Act”) signed into law on December 22, 2017, limits these deductions for some individuals starting in 2018. The Tax Act caps individual state and local tax deductions at $10,000 for the aggregate of state and local real property and income taxes or state and local sales taxes. Additionally, the Tax Act reduces the cap on mortgage interest deduction to $750,000 of debt for debt incurred after December 15, 2017 while retaining the $1 million debt cap for debt incurred prior to December 15, 2017. The limits on deductibility of mortgage interest and property taxes may increase the after-tax cost of owning a home for some individuals.

Any increases in personal income tax rates and/or additional tax deduction limits could adversely impact demand for our planned custom home, which could adversely affect the results of our operations.

We are subject to home warranty and construction defect claims arising in the ordinary course of business, which may lead to additional reserves or expenses.

Home warranty and construction defect claims are common in the homebuilding industry and can be costly. Certain claims may not be covered by insurance or may exceed applicable coverage limits, which could be material to our financial results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Use of Proceeds From Sale of Registered Securities

None.

Issuer Purchases of Equity Securities

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

24 

Item 5. Other Information.

On August 30, 2019, and effective on September 30, 2019, the Company extended the office space lease again, from October 1, 2019, through September 30, 2020, for a rental rate of $1,845 per month.

Item 6. Exhibits

See the Exhibit Index following the signature page to this Quarterly Report on Form 10-Q for a list of exhibits filed or furnished with this report, which Exhibit Index is incorporated herein by reference.

25 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, hereunto duly authorized.

	RELIANT HOLDINGS, INC.
Date: November 14, 2019	By: /s/ Elijah May
	Elijah May
	Chief Executive Officer and President
	(Principal Executive Officer and Principal Financial/Accounting Officer)

26 

EXHIBIT INDEX

			Incorporated by Reference
Exhibit Number	Description of Exhibit	Filed/ Furnished Herewith	Form	Exhibit	Filing Date/Period End Date	File  Number
2.1	Agreement for the Exchange of Common Stock dated May 23, 2014, by and between Reliant Holdings, Inc., Reliant Pools, Inc. and the stockholders of Reliant Pools, Inc.		S-1	2.1	10/27/16	333-214274
3.1	Articles of Incorporation as amended and restated		S-1	3.1	10/27/16	333-214274
3.2	Amended and Restated Bylaws		S-1	3.2	10/27/16	333-214274
10.1	Standard Form of Construction Contract		S-1	10.1	10/27/16	333-214274
10.2	Voting Agreement, dated as of November 3, 2017, by and among Michael Chavez and Elijah May		8-K	10.1	11/7/17	333-214274
10.3	Lock-Up Agreement dated November 7, 2017, between Reliant Holdings, Inc. and the stockholders name therein		8-K	10.2	11/7/17	333-214274
10.4	First Amendment to Lock-Up Agreement dated December 5, 2017 and effective November 7, 2017, between Reliant Holdings, Inc. and the stockholders name therein		8-K	10.2	12/17/18	333-214274
10.5	Second Amendment to Lock-Up Agreement dated December 3, 2018 and effective November 7, 2017, between Reliant Holdings, Inc. and the stockholders name therein		8-K	10.3	12/17/18	333-214274
10.6	Lock-Up Agreement dated December 3, 2018, between Reliant Holdings, Inc. and the stockholders name therein		8-K	10.5	12/17/18	333-214274
14.1	Code of Ethics and Code of Conduct		S-1	14.1	10/27/16	333-214274
31.1*	Certification of Principal Executive and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act	X
32.1**	Certification of Principal Executive and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act	X
101.INS*	XBRL Instance Document	X
101.SCH*	XBRL Taxonomy Extension Schema Document	X
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document	X
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document	X
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document	X
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document	X

* Filed herewith.

** Furnished Herewith.

27 

EX-31.1

Reliant Holdings, Inc. 10-Q

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Elijah May, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Reliant Holdings, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13- a-15(f) and 15d-15 (f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of a Quarterly Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2019	By:	/s/ Elijah May
		Elijah May Chief Executive Officer and President (Principal Executive Officer and Principal Financial/Accounting Officer)

EX-32.1

Reliant Holdings, Inc. 10-Q

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SS. 1350 AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Reliant Holdings, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2019, as filed with the Securities and Exchange Commission (the “Report”), I, Elijah May, Principal Executive and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)         The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)         The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 14, 2019	By:	/s/ Elijah May
		Elijah May  Chief Executive Officer and President (Principal Executive Officer and Principal Financial/Accounting Officer)

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 12, 2019
Document And Entity Information
Entity Registrant Name	Reliant Holdings, Inc.
Entity Central Index Key	0001682265
Document Type	10-Q
Entity File Number	000-56012
Entity Incorporation, State Code	NV
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Small Business	true
Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		14,585,000
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

XML

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($)	Common Stock [Member]	Additional Paid in Capital [Member]	Accumulated Deficit [Member]	Total
Balance, beginning at Dec. 31, 2017	$ 14,585	$ 43,365	$ (94,843)	$ (36,893)
Balance, beginning (in shares) at Dec. 31, 2017	14,585,000
Net income (loss)			(9,715)	(9,715)
Balance, ending at Mar. 31, 2018	$ 14,585	43,365	(104,558)	(46,608)
Balance, ending (in shares) at Mar. 31, 2018	14,585,000
Balance, beginning at Dec. 31, 2017	$ 14,585	43,365	(94,843)	(36,893)
Balance, beginning (in shares) at Dec. 31, 2017	14,585,000
Net income (loss)				99,319
Balance, ending at Sep. 30, 2018	$ 14,585	43,365	4,476	62,426
Balance, ending (in shares) at Sep. 30, 2018	14,585,000
Balance, beginning at Mar. 31, 2018	$ 14,585	43,365	(104,558)	(46,608)
Balance, beginning (in shares) at Mar. 31, 2018	14,585,000
Net income (loss)			43,426	43,426
Balance, ending at Jun. 30, 2018	$ 14,585	43,365	(61,132)	(3,182)
Balance, ending (in shares) at Jun. 30, 2018	14,585,000
Net income (loss)			65,608	65,608
Balance, ending at Sep. 30, 2018	$ 14,585	43,365	4,476	62,426
Balance, ending (in shares) at Sep. 30, 2018	14,585,000
Balance, beginning at Dec. 31, 2018	$ 14,585	43,365	(6,565)	$ 51,385
Balance, beginning (in shares) at Dec. 31, 2018	14,585,000			14,585,000
Net income (loss)			6,340	$ 6,340
Balance, ending at Mar. 31, 2019	$ 14,585	43,365	(225)	57,725
Balance, ending (in shares) at Mar. 31, 2019	14,585,000
Balance, beginning at Dec. 31, 2018	$ 14,585	43,365	(6,565)	$ 51,385
Balance, beginning (in shares) at Dec. 31, 2018	14,585,000			14,585,000
Net income (loss)				$ 84,919
Balance, ending at Sep. 30, 2019	$ 14,585	43,365	78,354	$ 136,304
Balance, ending (in shares) at Sep. 30, 2019	14,585,000			14,585,000
Balance, beginning at Mar. 31, 2019	$ 14,585	43,365	(225)	$ 57,725
Balance, beginning (in shares) at Mar. 31, 2019	14,585,000
Net income (loss)			(1,555)	(1,555)
Balance, ending at Jun. 30, 2019	$ 14,585	43,365	(1,780)	56,170
Balance, ending (in shares) at Jun. 30, 2019	14,585,000
Net income (loss)			80,134	80,134
Balance, ending at Sep. 30, 2019	$ 14,585	$ 43,365	$ 78,354	$ 136,304
Balance, ending (in shares) at Sep. 30, 2019	14,585,000			14,585,000

XML

Contracts in Process

9 Months Ended

Sep. 30, 2019

Contractors [Abstract]

Contracts in Process

Note 3. Contracts in Process

The net asset (liability) position for contracts in process consisted of the following:

	September 30,			December 31,
	2019			2018
Costs on uncompleted contracts	$	430,204		$	169,683
Estimated earnings		213,407			76,486
		643,611			246,169
Less: Progress billings		(692,899	)		(326,384	)
	$	(49,288	)	$	(80,215	)

The net asset (liability) position for contracts in process is included in the accompanying consolidated balance sheets as follows:

	September 30,  2019			December 31, 2018
Costs and estimated earnings in excess of billings on uncompleted contracts	$	29,076		$	9,776
Billings in excess of costs and estimated earnings on uncompleted contracts		(78,364	)		(89,991	)
	$	(49,288	)	$	(80,215	)

XML

Related Party Transactions

9 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

Related Party Transactions

Note 7. Related Party Transactions

As of September 30, 2019 and December 31, 2018, Mr. Chavez was owed $0 and $5,000, respectively, from the Company. The advance was due on demand, unsecured, repaid in the third quarter of 2019 and had no stated interest rate.

XML

Accounts Receivable (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Schedule of accounts receivable

Accounts receivable consisted of the following:

	September 30,			December 31,
	2019			2018
Contract receivables	$	3,000		$	3,000
Less: Allowance for doubtful accounts		(3,000	)		(3,000	)
	$	—		$	—

XML

Contracts in Process (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Contract with Customer, Asset and Liability [Abstract]
Costs on uncompleted contracts	$ 430,204	$ 169,683
Estimated earnings	213,407	76,486
Total	643,611	246,169
Less: Progress billings	(692,899)	(326,384)
Net asset (liability) position for contracts in process	(49,288)	(80,215)
Costs and estimated earnings in excess of billings on uncompleted contracts	29,076	9,776
Billings in excess of costs and estimated earnings on uncompleted contracts	(78,364)	(89,991)
Net asset (liability) position for contracts in process	$ (49,288)	$ (80,215)

XML

Related Party Transactions (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Michael Chavez (Chief Executive Officer) [Member]
Advance from related party	$ 0	$ 5,000

XML

Accounts Receivable (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Contract receivables	$ 3,000	$ 3,000
Less: Allowance for doubtful accounts	$ (3,000)	$ (3,000)

XML

Commitments and Contingencies (Details Narrative)		1 Months Ended				9 Months Ended
	Dec. 21, 2018 USD ($)	Oct. 31, 2019 USD ($)	Oct. 31, 2018 USD ($)	Oct. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2019 USD ($) ft²	Sep. 30, 2018 USD ($)
Area of office space leased | ft²						1,000
Monthly rental payment			$ 1,795	$ 1,745	$ 1,695
Lease expense						$ 17,145	$ 16,805
Lease Renewal [Member]
Monthly rental payment		$ 1,845
Reliant Pools [Member]
Name of defendant	Brian Moats
Allegations	The suit alleges that the Company failed to install a French drain under the pool as required by the terms of the contract.
Reliant Pools [Member] | Maximum [Member]
Damages sought, value	$ 200,000
Reliant Pools [Member] | Minimum [Member]
Damages sought, value	$ 100,000

XML

Accounts Receivable

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Accounts Receivable

Note 2. Accounts Receivable

Accounts receivable consisted of the following:

	September 30,			December 31,
	2019			2018
Contract receivables	$	3,000		$	3,000
Less: Allowance for doubtful accounts		(3,000	)		(3,000	)
	$	—		$	—

The Company recognized no bad debt expense during the nine months ended September 30, 2019 and 2018.

XML

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenue	$ 591,891	$ 438,977	$ 1,310,232	$ 1,093,763
Cost of goods sold	(401,284)	(287,232)	(869,962)	(725,895)
Gross Margin	190,607	151,745	440,270	367,868
Operating Expenses
General and administrative	110,378	85,985	355,036	268,030
Total Operating Expenses	(110,378)	(85,985)	(355,036)	(268,030)
Income (Loss) From Operations	80,229	65,760	85,234	99,838
Other income (expense)
Interest income	32	18	73	39
Interest expense	(127)	(170)	(388)	(558)
Total other income (expense)	(95)	(152)	(315)	(519)
Income (Loss) before income taxes	80,134	65,608	84,919	99,319
Provision for Income Tax
Net Income (Loss)	$ 80,134	$ 65,608	$ 84,919	$ 99,319
Net Income (Loss) Per Share - Basic and Diluted (in dollars per share)	$ 0.01	$ 0.00	$ 0.01	$ 0.01
Weighted Average Common Shares Outstanding (in shares)	14,585,000	14,585,000	14,585,000	14,585,000

XML

Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 6. Commitments and Contingencies

The Company leases approximately 1,000 square feet of office space in Austin, Texas. The lease was to expire in September 2017 with a monthly rent of $1,695. On September 5, 2017 and effective on September 30, 2017, the Company extended its office space lease from October 1, 2017 to September 30, 2018. In connection with the extension, the Company agreed to a rental increase to $1,745 per month. On October 15, 2018, the Company extended the office space lease from October 1, 2018 through September 30, 2019 for a rental rate of $1,795 per month. On August 30, 2019, and effective on September 30, 2019, the Company extended the office space lease again, from October 1, 2019, through September 30, 2020, for a rental rate of $1,845 per month.

Lease expense was $17,145 and $16,805 for the nine months ended September 30, 2019 and 2018, respectively. 

On October 19, 2018, a former client, Paul T. Denucci filed an Original Petition naming the Company, Elijah May, our sole officer and director and Michael Chavez, our prior Chief Executive Officer and former sole director, as defendants. The Original Petition was originally filed in Williamson County, Texas, provided the proceeding was subsequently moved to the County Court of Travis County, Texas (County Court 2 – Cause No. C-1-CV-18-011465). The Original Petition alleged breach of contract and alleged defects in the pool which the Company built on Mr. Denucci’s behalf. The Original Petition seeks damages in an amount sufficient to allow Mr. Denucci to repair the alleged defects in the pool. We deny Mr. Denucci’s claims and intend to vigorously defend ourselves and our current and former officers against such claims. Trial has been set for December 2019.

On December 21, 2018, a former client, Brian Moats filed an Original Petition naming Reliant Pools as a defendant in a suit filed in the County Court at Law No. 2 for Travis County, Texas (Cause No. C-1-CV-18-012062). The suit alleges that the Company failed to install a French drain under the pool as required by the terms of the contract, alleges causes of action of breach of express warranty and breach of contract and seeks damages of between $100,000 and $200,000. We deny Mr. Moats’ claims and intend to vigorously defend ourselves against such claims. Trial is set for the first quarter of 2020.

XML

The Company and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company

The Company

Reliant Holdings, Inc. (the “Company”) was formed as a Nevada corporation on May 19, 2014. On May 23, 2014, Reliant Holdings, Inc., along with Reliant Pools, Inc., formerly Reliant Pools, G.P., which was formed in September 2013 (“Reliant Pools”) and the shareholders of Reliant Pools, entered into an Agreement for the Exchange of common stock whereby Reliant Pools, Inc. became a wholly-owned subsidiary of Reliant Holdings, Inc. Reliant Holdings, Inc. designs, and installs swimming pools. On October 10, 2018, the Company incorporated a new wholly-owned subsidiary in Texas, Reliant Custom Homes, Inc. During the third quarter of 2019, the Company purchased land on which it intends to construct a custom home. The Company is headquartered in Austin, Texas.

Basis of Presentation

Basis of Presentation

The financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

The consolidated financial statements and related disclosures as of September 30, 2019 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, these unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These unaudited financial statements should be read in conjunction with the audited financial statements of the Company for the years ended December 31, 2018 and 2017 included in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on April 1, 2019. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year.

New Accounting Pronouncements

New Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize assets and liabilities for most leases. ASU 2016-02 is effective for public entity financial statements for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. ASU 2016-02 was further clarified and amended within ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20 which included provisions that would provide us with the option to adopt the provisions of the new guidance using a modified retrospective transition approach, without adjusting the comparative periods presented. We adopted the new standard on January 1, 2019 and used the effective date as our date of initial application under the modified retrospective approach. We elected the short-term lease recognition exemption for all of our leases that qualify. This means, for those leases we will not recognize right-of-use (RoU) assets or lease liabilities. The implementation of this new standard has no impact on our financial statements.

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Concentration of Risk (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Concentration Risk [Line Items]
Revenue	$ 591,891	$ 438,977	$ 1,310,232	$ 1,093,763
Gross Revenue [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration percentage			48.00%	34.00%
Number of customers			4	3
Minimum [Member] | Gross Revenue [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration percentage			10.00%	10.00%

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Note Payable (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Term note with a bank secured by truck, payable in monthly installments of $537, including interest at 4.35% through February 11, 2021		$ 13,248
Total long-term debt		13,248
Less: current portion		(5,992)
Long-term debt net of current portion		$ 7,256

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Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current Assets
Cash	$ 246,754	$ 181,093
Real estate inventory	17,424
Federal income tax receivable	10,000	10,000
Prepaid and other current assets		1,500
Contract assets	29,076	9,776
Total current assets	303,254	202,369
Equipment, net of accumulated depreciation of $25,893 and $20,812 at September 30, 2019 and December 31, 2018, respectively	9,033	14,114
Total Assets	312,287	216,483
Current Liabilities
Accounts payable and accrued liabilities	97,619	56,859
Contract liabilities	78,364	89,991
Current portion of note payable		5,992
Due to related party		5,000
Total current liabilities	175,983	157,842
Long-term note payable, net of current portion		7,256
Total Liabilities	175,983	165,098
Commitments
Stockholders' Equity
Common stock, 70,000,000 shares authorized, $.001 par value, 14,585,000 issued and outstanding as of September 30, 2019 and December 31, 2018	14,585	14,585
Additional paid-in capital	43,365	43,365
Accumulated deficit	78,354	(6,565)
Total Stockholders' Equity	136,304	51,385
Total Liabilities and Stockholders' Equity	$ 312,287	$ 216,483

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating Activities
Net income	$ 84,919	$ 99,319
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	5,081	5,081
Changes in operating assets and liabilities:
Accounts receivable		(2,430)
Real estate inventory	(17,424)
Prepaid and other current assets	1,500
Contract assets	(19,300)	15,088
Contract liabilities	(11,627)	66,299
Accounts payable and accrued liabilities	40,760	15,067
Net Cash Provided By Operating Activities	83,909	198,424
Financing Activities
Payments on related party advances	(5,000)
Payments on note payable	(13,248)	(4,278)
Net Cash Used In Financing Activities	(18,248)	(4,278)
Net change in Cash	65,661	194,146
Cash - Beginning of Period	181,093	18,252
Cash - End of Period	246,754	212,398
Supplemental Disclosures
Interest paid	261	956
Income taxes paid

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Concentration of Risk

9 Months Ended

Sep. 30, 2019

Risks and Uncertainties [Abstract]

Concentration of Risk

Note 4. Concentration of Risk

The Company had gross revenue of $1,310,232 and $1,093,763 for the nine months ended September 30, 2019 and 2018, respectively. The Company had four customers representing more than 10% of gross revenue, and combined 48% of revenue for the nine months ended September 30, 2019. The Company had three customers representing more than 10% of gross revenue, and combined 34% of revenue for the nine months ended September 30, 2018.

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Note Payable

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Note Payable

Note 8. Note Payable

	September 30, 2019		December 31, 2018
Term note with a bank secured by truck, payable in monthly installments of $537, including interest at 4.35% through February 11, 2021	$	—	$	13,248
Total long-term debt		—		13,248
Less: current portion		—		(5,992	)
Long-term debt net of current portion	$	—	$	7,256

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Contracts in Process (Tables)

9 Months Ended

Sep. 30, 2019

Contractors [Abstract]

Schedule of net asset (liability) position for contracts in process

The net asset (liability) position for contracts in process consisted of the following:

	September 30,			December 31,
	2019			2018
Costs on uncompleted contracts	$	430,204		$	169,683
Estimated earnings		213,407			76,486
		643,611			246,169
Less: Progress billings		(692,899	)		(326,384	)
	$	(49,288	)	$	(80,215	)

The net asset (liability) position for contracts in process is included in the accompanying consolidated balance sheets as follows:

	September 30,  2019			December 31, 2018
Costs and estimated earnings in excess of billings on uncompleted contracts	$	29,076		$	9,776
Billings in excess of costs and estimated earnings on uncompleted contracts		(78,364	)		(89,991	)
	$	(49,288	)	$	(80,215	)

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 25,893	$ 20,812
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	14,585,000	14,585,000
Common stock, shares outstanding	14,585,000	14,585,000

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The Company and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Summary of Significant Accounting Policies

Note 1. The Company and Summary of Significant Accounting Policies

The Company

Reliant Holdings, Inc. (the “Company”) was formed as a Nevada corporation on May 19, 2014. On May 23, 2014, Reliant Holdings, Inc., along with Reliant Pools, Inc., formerly Reliant Pools, G.P., which was formed in September 2013 (“Reliant Pools”) and the shareholders of Reliant Pools, entered into an Agreement for the Exchange of common stock whereby Reliant Pools, Inc. became a wholly-owned subsidiary of Reliant Holdings, Inc. Reliant Holdings, Inc. designs, and installs swimming pools. On October 10, 2018, the Company incorporated a new wholly-owned subsidiary in Texas, Reliant Custom Homes, Inc. During the third quarter of 2019, the Company purchased land on which it intends to construct a custom home. The Company is headquartered in Austin, Texas.

Basis of Presentation

The financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

The consolidated financial statements and related disclosures as of September 30, 2019 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, these unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These unaudited financial statements should be read in conjunction with the audited financial statements of the Company for the years ended December 31, 2018 and 2017 included in our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on April 1, 2019. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year.

New Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize assets and liabilities for most leases. ASU 2016-02 is effective for public entity financial statements for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. ASU 2016-02 was further clarified and amended within ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20 which included provisions that would provide us with the option to adopt the provisions of the new guidance using a modified retrospective transition approach, without adjusting the comparative periods presented. We adopted the new standard on January 1, 2019 and used the effective date as our date of initial application under the modified retrospective approach. We elected the short-term lease recognition exemption for all of our leases that qualify. This means, for those leases we will not recognize right-of-use (RoU) assets or lease liabilities. The implementation of this new standard has no impact on our financial statements.

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Note Payable (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of long term debt

	September 30, 2019		December 31, 2018
Term note with a bank secured by truck, payable in monthly installments of $537, including interest at 4.35% through February 11, 2021	$	—	$	13,248
Total long-term debt		—		13,248
Less: current portion		—		(5,992	)
Long-term debt net of current portion	$	—	$	7,256

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Equity

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Equity

Note 5. Equity

From January 2016 to September 2016, the Company sold 885,000 shares of restricted common stock for $44,250, or $0.05 per share in a private offering pursuant to a private placement memorandum. Purchasers in the offering included Lilia Chavez, the mother of Michael Chavez, the Company’s then President and then sole director (10,000 shares for $500), Alexander Spohn, the adult son of Becky Spohn, the Company’s then Controller (5,000 shares for $250), and Phyllis Laws, the mother of Becky Spohn, the Company’s then Controller (5,000 shares for $250). 

In September 2016, the Company discovered that the investors in the January 2016 to September 2016 offering may not have been provided all of the information and materials (including current audited financial statements), as is required under the Securities Act in order to claim an exemption from registration pursuant to Rule 506 of the Securities Act. The Company believes that all such transactions still complied with, and were exempt from registration under Section 4(a)(2) of the Securities Act because the recipients acquired the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof; the securities were offered without any general solicitation by the Company or the Company’s representatives; no underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions; the securities sold are subject to transfer restrictions, and the certificates evidencing the securities (or book entry issuances) contain an appropriate legend stating that such securities have not been registered under the Securities Act and may not be offered or sold absent registration or pursuant to an exemption therefrom; and the securities were not registered under the Securities Act and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act and any applicable state securities laws.

Nevertheless, based on the above, the Company offered the January 2016 to September 2016 purchasers of the Company’s common stock the right to rescind their previous common stock acquisitions and receive, in exchange for any shares relinquished to the Company, a payment equal to their original purchase price plus interest at the applicable statutory rate in the state in which they reside. The rescission offer expired at 5:00 pm (CST) on October 26, 2016. None of the prior purchasers opted to rescind their prior purchases in connection with the rescission offer.

During the first quarter of fiscal 2017, the Company learned that Michael Chavez, the former President and former sole director, was barred from association with any FINRA member in any capability. Mr. Chavez similarly became aware of the FINRA bar at the same time. Pursuant to Rule 506(d), Rule 506 of the Securities Act, is not available for a sale of securities if among other persons, any director or executive officer of an issuer has been subject to certain disqualifying events after September 23, 2013, including suspension or expulsion from membership in a self-regulatory organization (SRO), such as FINRA. However, in the event the disqualifying event occurred prior to September 23, 2013, the issuer is not prohibited from relying on Rule 506, provided that pursuant to Rule 506(e) of the Securities Act, an issuer is required to furnish to each purchaser, a reasonable time prior to sale, a description in writing of any matters that would have triggered disqualification under Rule 506(d)(1), but occurred before September 23, 2013.

As Mr. Chavez’s FINRA bar constituted a disqualifying event under Rule 506(d), the Company was required to furnish to each purchaser of shares of the Company, a reasonable time prior to sale, a description in writing of such event. The Company did not do that, because as described above, the Company and Mr. Chavez only became aware of the FINRA bar after the close of the offering. Notwithstanding the fact that the Company was not aware of Mr. Chavez’s FINRA bar, the Company determined that the failure to provide such information may prohibit the Company from relying on a Rule 506 exemption for the prior issuances and sales of shares. The Company believes that all such transactions still complied with, and were exempt from registration under Section 4(a)(2) of the Securities Act, because the recipients acquired the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof; the securities were offered without any general solicitation by us or the Company’s representatives; no underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions, the securities sold/issued were subject to transfer restrictions, and the certificates evidencing the securities (or book entry issuances) contain an appropriate legend stating that such securities have not been registered under the Securities Act and may not be offered or sold absent registration or pursuant to an exemption therefrom; and the securities were not registered under the Securities Act and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act and any applicable state securities laws. 

Nevertheless, management determined that the Company would offer rescission to all of its stockholders in April 2017. In connection therewith, in April 2017, the Company offered every stockholder of the Company’s common stock the right to rescind their previous purchases and acquisitions and to receive, in exchange for any shares relinquished to us, a payment equal to their original purchase price or consideration provided, plus interest at the applicable statutory rate in the state in which they reside. The rescission offer expired at 5:00 pm (CST) on April 29, 2017. None of the Company’s stockholders opted to rescind their prior purchase/acquisitions in connection with the rescission offer.

The federal securities laws and certain state securities laws do not expressly provide that a rescission offer will terminate a purchaser’s right to rescind a sale of securities that was not registered under the relevant securities laws as required. Accordingly, the Company may continue to be potentially liable under certain securities laws for the offer and sale of the shares sold and issued between May 2014 and September 2016, totaling $57,950 of securities in aggregate, along with statutory interest on such shares, even after the Company completed the rescission offers.

This amount is recorded in equity in the accompanying September 30, 2019 and December 31, 2018 balance sheets. This will be evaluated at each reporting period for reclassification to a liability if a rescission request is made.

Effective on November 3, 2017, Michael Chavez, the Company’s former sole director, Chief Executive Officer and President of the Company, entered into a Voting Agreement with Elijah May, the Company’s then Chief Operating Officer (COO), and current sole director, Chief Executive Officer and President as well as the Company’s COO (the “Voting Agreement”), resulting in a change in control of the Company.

Pursuant to the Voting Agreement, Mr. Chavez provided complete authority to Mr. May to vote the 4,000,000 shares of common stock which Mr. Chavez then held (and any other securities of the Company obtained by Mr. Chavez in the future) at any and all meetings of stockholders of the Company and via any written consents. Those 4,000,000 shares represented 27.4% of the Company’s common stock as of the parties’ entry into the Voting Agreement and together with the 4,500,000 shares held by Mr. May prior to the parties’ entry into the Voting Agreement, constitute 58.3% of the Company’s total outstanding shares of common stock. The Voting Agreement has a term of ten years, through November 3, 2027, but can be terminated at any time by Mr. May and terminates automatically upon the death of Mr. May. In connection with his entry into the Voting Agreement, Mr. Chavez provided Mr. May an irrevocable voting proxy to vote the shares covered by the Voting Agreement. Additionally, during the term of such agreement, Mr. Chavez agreed not to transfer the shares covered by the Voting Agreement except pursuant to certain limited exceptions. Due to the Voting Agreement, Mr. May holds voting control over the Company due to his ability to vote 58.3% of the Company’s total outstanding shares of voting stock.

Effective on November 3, 2017, the Board of Directors of the Company and the Board of Directors of Reliant Pools Inc., the Company’s wholly-owned subsidiary, each then consisting solely of Mr. Chavez, increased the number of members of the Board of Directors of each company from one to two and appointed Mr. May as a member of the Board of Directors of each company to fill the vacancy created by such vacancy.

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Real Estate Inventory

9 Months Ended

Sep. 30, 2019

Real Estate [Abstract]

Real Estate Inventory

Note 9. Real Estate Inventory

As of September 30, 2019, real estate inventory consists of one lot in Lago Vista, Texas.

Real estate inventory is stated at cost unless the carrying amount is determined not to be recoverable. As of September 30, 2019, the Company has not begun development on the land purchased.

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Equity (Details Narrative) - USD ($)		9 Months Ended	26 Months Ended
	Nov. 03, 2017	Sep. 30, 2016	Sep. 30, 2016
Sale of stock			$ 57,950
Elijah May (Chief Operating Officer) [Member] | Voting Agreement [Member]
Common stock shares held by related party	4,500,000
Ownership percentage	58.30%
Michael Chavez (Chief Executive Officer) [Member]
Common stock shares held by related party	4,000,000
Ownership percentage	27.40%
Restricted Stock [Member]
Sale of stock		$ 44,250
Sale of stock, shares		885,000
Share price (per share)		$ 0.05	$ 0.05
Restricted Stock [Member] | Phyllis Laws [Member]
Sale of stock		$ 250
Sale of stock, shares		5,000
Restricted Stock [Member] | Alexander Spohn [Member]
Sale of stock		$ 250
Sale of stock, shares		5,000
Restricted Stock [Member] | Lilia Chavez [Member]
Sale of stock		$ 500
Sale of stock, shares		10,000

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Note Payable (Details Narrative)	9 Months Ended
	Sep. 30, 2019 USD ($)
Debt Disclosure [Abstract]
Installment payment	$ 537
Interest rate	4.35%
Debt maturity date	Feb. 11, 2021