v3.26.1
Contract Assets and Contract Liabilities
 3 Months Ended
Mar. 31, 2026
Contract Assets and Contract Liabilities [Abstract]  
CONTRACT ASSETS AND CONTRACT LIABILITIES

5. CONTRACT ASSETS AND CONTRACT LIABILITIES 

 

Costs and estimated earnings on uncompleted contracts, which represent contract assets and contract liabilities, consisted of the following:

 

    March 31,
2026		     December 31,
2025		  
Costs incurred on uncompleted contracts   $ 558,692     $ 321,479  
Estimated earnings to date on uncompleted contracts     153,649       243,977  
Gross contract assets     712,341       565,456  
Less: billings to date     (1,063,865 )     (937,032 )
Net contract liabilities on uncompleted contracts   $ (351,524 )   $ (371,576 )

 

Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. The Company periodically evaluates and revises its estimates and makes adjustments when they are considered necessary. During the three months ended March 31, 2026, the Company recognized $4,989 of revenue related to its contract liabilities as of December 31, 2025. As of March 31, 2025, the Company has contract assets of $103,736 and contract liabilities of $455,260. The Company’s contract liabilities are included within ‘contract liabilities and deferred revenue’ on the condensed consolidated balance sheets.