|
Note
8. Contract assets and liabilities
As
of June 30, 2026 and December 31, 2025, contract assets and contract liabilities consisted of the following:
Schedule of Contract Assets and Liabilities
| |
|
June 30, |
|
|
December 31, |
|
| Contract assets |
|
2026 |
|
|
2025 |
|
| |
|
|
|
|
|
|
| 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 |
|
$ |
55,606 |
|
|
$ |
322,773 |
|
| 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 – related party |
|
|
194,108 |
|
|
|
209,673 |
|
| Retainage included in contract assets due to being conditional on something other than solely passage of time – related party |
|
|
247,114 |
|
|
|
- |
|
| Total contract assets |
|
$ |
496,828 |
|
|
$ |
532,446 |
|
The
contract asset balance of $496,828 as of June 30, 2026 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.
| |
|
June 30, |
|
|
December 31, |
|
| Contract liabilities |
|
2026 |
|
|
2025 |
|
| |
|
|
|
|
|
|
| Payments received or receivable (contracts receivable) in excess of revenue recognized on uncompleted contracts (contract liability), excluding retainage |
|
$ |
181,299 |
|
|
$ |
186,537 |
|
| Payments received or receivable (contracts receivable) in excess of revenue recognized on uncompleted contracts (contract liability), excluding retainage – related party |
|
$ |
28,292 |
|
|
$ |
- |
|
| Retainage included in contract liabilities due to being conditional on something other than solely passage of time – related party |
|
|
218,822 |
|
|
|
- |
|
| Total contract liabilities |
|
$ |
428,413 |
|
|
$ |
186,537 |
|
The
contract liability balance of $428,413 as of June 30, 2026 includes $181,299 that represents a continuation of the prior year balance,
together with $28,292 of related party contract liabilities and $218,822 of related party retainage, both arising from contracts entered
into during the period.
|