|
Note
9. Contract assets and liabilities
As
of December 31, 2025 and 2024, contract assets and contract liabilities consisted of the following:
Schedule of Contract Assets and Liabilities
| |
|
December 31, |
|
|
December 31, |
|
| Contract assets |
|
2025 |
|
|
2024 |
|
| |
|
|
|
|
|
|
| Revenue recognized in excess of amounts paid or payable (contracts receivable) to the company on uncompleted contracts (contract asset) that are subject to restrictions on invoicing, excluding retainage |
|
$ |
322,773 |
|
|
$ |
1,331,194 |
|
| Retainage included in contract assets due to being conditional on something other than solely passage of time |
|
|
- |
|
|
|
16,192 |
|
| Retainage included in contract assets due to being conditional on something other than solely passage of time – related party |
|
|
209,673 |
|
|
|
46,953 |
|
| Total contract assets |
|
$ |
532,446 |
|
|
$ |
1,394,339 |
|
During the year ended December 31, 2025, the Company
invoiced and recognized into revenue substantially all contract asset balances from fiscal year 2024. The contract asset balance of $532,446
as of December 31, 2025 relates to services performed on contracts for which the Company does not yet have the contractual right to invoice
as of the balance sheet date.
| |
|
December 31, |
|
|
December 31, |
|
| Contract liabilities |
|
2025 |
|
|
2024 |
|
| |
|
|
|
|
|
|
| Payments received or receivable (contracts receivable) in excess of revenue recognized on uncompleted contracts (contract liability), excluding retainage |
|
$ |
186,537 |
|
|
$ |
- |
|
| Retainage included in contract liabilities due to being conditional on something other than solely passage of time |
|
|
- |
|
|
|
16,192 |
|
| Retainage included in contract liabilities due to being conditional on something other than solely passage of time – related party |
|
|
- |
|
|
|
46,953 |
|
| Total contract liabilities |
|
$ |
186,537 |
|
|
$ |
63,145 |
|
During the year ended December 31, 2025, the Company
recognized the full contract liability balance of $63,145 from fiscal year 2024 into revenue. The contract liability balance of $186,537
as of December 31, 2025 relates to a separate new contract and does not represent a continuation of the prior year balance.
|