Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Dec. 12, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | Reliant Holdings, Inc. | |
Entity Central Index Key | 0001682265 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 16,785,000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 000-56012 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 47-2200506 | |
Entity Address Address Line 1 | 12343 Hymeadow Drive | |
Entity Address Address Line 2 | Suite 3-A | |
Entity Address City Or Town | Austin | |
Entity Address State Or Province | TX | |
Entity Address Postal Zip Code | 78750 | |
City Area Code | 512 | |
Local Phone Number | 407-2623 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash | $ 215,589 | $ 282,621 |
Accounts receivable | 1,500 | 0 |
House and real estate inventory | 439,158 | 339,074 |
Contract assets | 0 | 30,571 |
Prepaid expenses | 4,032 | 22,177 |
Other current assets | 1,405 | 1,405 |
Total current assets | 661,684 | 675,848 |
Equipment, net of accumulated depreciation of $81,189 and $69,484 as of September 30, 2023 and December 31, 2022, respectively | 31,173 | 42,878 |
Right-of-use asset | 11,132 | 32,520 |
Total Assets | 703,989 | 751,246 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 91,848 | 33,246 |
Accrued liabilities - related parties | 53,500 | 48,000 |
Contract liabilities | 243,960 | 336,373 |
Construction loan | 220,309 | 186,404 |
Current portion of note payable | 3,206 | 9,630 |
Current portion of right-of-use liability | 11,244 | 25,940 |
Total current liabilities | 624,067 | 639,593 |
Long-term note payable, net of current portion | 0 | 2,864 |
Right-of-use liability | 0 | 6,783 |
Total Liabilities | 624,067 | 649,240 |
Stockholders' Equity | ||
Preferred stock Series A, 1,000 shares authorized, $0.001 par value, 1,000 and 0 issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Common stock, 70,000,000 shares authorized, $0.001 par value, 16,785,000 and 16,385,000 issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 16,785 | 16,385 |
Additional paid-in capital | 437,989 | 396,564 |
Accumulated deficit | (374,853) | (310,944) |
Total Stockholders' Equity | 79,922 | 102,006 |
Total Liabilities and Stockholders' Equity | 703,989 | 751,246 |
Series A Preferred Stock[Member] | ||
Stockholders' Equity | ||
Preferred stock Series A, 1,000 shares authorized, $0.001 par value, 1,000 and 0 issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Equipment, accumulated depreciation | $ 81,189 | $ 69,484 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
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 | 16,785,000 | 16,385,000 |
Common stock, shares outstanding | 16,785,000 | 16,385,000 |
Series A Preferred Stock[Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 1,000 | 0 |
Preferred stock, shares outstanding | 1,000 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consolidated Statements of Operations (Unaudited) | ||||
Revenue | $ 597,400 | $ 1,360,476 | $ 1,773,539 | $ 3,438,580 |
Cost of goods sold | (457,697) | (910,152) | (1,186,669) | (2,458,261) |
Gross margin | 139,703 | 450,324 | 586,870 | 980,319 |
Operating expenses | ||||
General and administrative | 168,628 | 211,817 | 642,529 | 626,748 |
Total operating expenses | (168,628) | (211,817) | (642,529) | (626,748) |
Income (loss) from operations | (28,925) | 238,507 | (55,659) | 353,571 |
Other income (expense) | ||||
Interest income | 86 | 187 | 612 | 393 |
Interest expense | (5,140) | (1,022) | (8,862) | (2,681) |
Total other income (expense) | (5,054) | (835) | (8,250) | (2,288) |
Income (loss) before income taxes | (33,979) | 237,672 | (63,909) | 351,283 |
Provision for income tax | 0 | 0 | 0 | 0 |
Net income (loss) | $ (33,979) | $ 237,672 | $ (63,909) | $ 351,283 |
Net income per share - basic and diluted | $ 0 | $ 0.01 | $ 0 | $ 0.02 |
Weighted average common shares outstanding -basic and diluted | 16,785,000 | 16,385,000 | 16,584,443 | 16,385,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Deficit (Unaudited) - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) |
Balance, shares at Dec. 31, 2021 | 1,000 | 16,385,000 | |||
Balance, amount at Dec. 31, 2021 | $ (231,870) | $ 1 | $ 16,385 | $ 396,564 | $ (644,820) |
Net loss | (2,829) | $ 0 | $ 0 | 0 | (2,829) |
Balance, shares at Mar. 31, 2022 | 1,000 | 16,385,000 | |||
Balance, amount at Mar. 31, 2022 | (234,699) | $ 1 | $ 16,385 | 396,564 | (647,649) |
Balance, shares at Dec. 31, 2021 | 1,000 | 16,385,000 | |||
Balance, amount at Dec. 31, 2021 | (231,870) | $ 1 | $ 16,385 | 396,564 | (644,820) |
Net loss | 351,283 | ||||
Balance, shares at Sep. 30, 2022 | 1,000 | 16,385,000 | |||
Balance, amount at Sep. 30, 2022 | 119,413 | $ 1 | $ 16,385 | 396,564 | (293,537) |
Balance, shares at Mar. 31, 2022 | 1,000 | 16,385,000 | |||
Balance, amount at Mar. 31, 2022 | (234,699) | $ 1 | $ 16,385 | 396,564 | (647,649) |
Net loss | 116,440 | $ 0 | $ 0 | 0 | 116,440 |
Balance, shares at Jun. 30, 2022 | 1,000 | 16,385,000 | |||
Balance, amount at Jun. 30, 2022 | (118,259) | $ 1 | $ 16,385 | 396,564 | (531,209) |
Net loss | 237,672 | $ 0 | $ 0 | 0 | 237,672 |
Balance, shares at Sep. 30, 2022 | 1,000 | 16,385,000 | |||
Balance, amount at Sep. 30, 2022 | 119,413 | $ 1 | $ 16,385 | 396,564 | (293,537) |
Balance, shares at Dec. 31, 2022 | 1,000 | 16,385,000 | |||
Balance, amount at Dec. 31, 2022 | 102,006 | $ 1 | $ 16,385 | 396,564 | (310,944) |
Net loss | 29,969 | 0 | $ 0 | 0 | 29,969 |
Shares issued for services, shares | 400,000 | ||||
Shares issued for services, amount | 36,000 | $ 0 | $ 400 | 35,600 | 0 |
Balance, shares at Mar. 31, 2023 | 1,000 | 16,785,000 | |||
Balance, amount at Mar. 31, 2023 | 167,975 | $ 1 | $ 16,785 | 432,164 | (280,975) |
Balance, shares at Dec. 31, 2022 | 1,000 | 16,385,000 | |||
Balance, amount at Dec. 31, 2022 | 102,006 | $ 1 | $ 16,385 | 396,564 | (310,944) |
Net loss | (63,909) | ||||
Balance, shares at Sep. 30, 2023 | 1,000 | 16,785,000 | |||
Balance, amount at Sep. 30, 2023 | 79,922 | $ 1 | $ 16,785 | 437,989 | (374,853) |
Balance, shares at Mar. 31, 2023 | 1,000 | 16,785,000 | |||
Balance, amount at Mar. 31, 2023 | 167,975 | $ 1 | $ 16,785 | 432,164 | (280,975) |
Net loss | (59,899) | $ 0 | $ 0 | 0 | (59,899) |
Balance, shares at Jun. 30, 2023 | 1,000 | 16,785,000 | |||
Balance, amount at Jun. 30, 2023 | 108,076 | $ 1 | $ 16,785 | 432,164 | (340,874) |
Net loss | (33,979) | 0 | 0 | 0 | (33,979) |
Shareholder contributions | 5,825 | $ 0 | $ 0 | 5,825 | 0 |
Balance, shares at Sep. 30, 2023 | 1,000 | 16,785,000 | |||
Balance, amount at Sep. 30, 2023 | $ 79,922 | $ 1 | $ 16,785 | $ 437,989 | $ (374,853) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income (loss) | $ (63,909) | $ 351,283 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 36,000 | 0 |
Depreciation | 11,705 | 11,724 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,500) | 0 |
Contract assets | 30,571 | 7,325 |
House and real estate inventory | (100,084) | (175,907) |
Prepaid and other current assets | 18,145 | 11,748 |
Right-of-use asset | 21,388 | 12,107 |
Contract liabilities | (92,413) | (160,537) |
Accounts payable and accrued liabilities | 58,602 | 1,434 |
Accrued liabilities - related parties | 5,500 | 0 |
Net cash provided by (used in) operating activities | (75,995) | 59,177 |
Financing Activities | ||
Proceeds from construction loan | 33,905 | 102,177 |
Payments on note payable | (9,288) | (15,293) |
Payments on right-of-use liability | (21,479) | (11,972) |
Contributions from shareholders | 5,825 | 0 |
Net cash provided by financing activities | 8,963 | 74,912 |
Net change in cash | (67,032) | 134,089 |
Cash - beginning of period | 282,621 | 339,996 |
Cash - end of period | 215,589 | 474,085 |
Supplemental Disclosures | ||
Interest paid | 8,862 | 2,681 |
Income taxes paid | 15,029 | 0 |
Non-cash Disclosures | ||
Purchase of equipment with note payable | 0 | 0 |
Establishment of right-of-use asset | $ 0 | $ 50,825 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
The Company and Summary of Significant Accounting Policies | |
The Company and Summary of Significant Accounting Policies | Note 1. The Company and Summary of Significant Accounting Policies The Compan y Reliant Holdings, Inc. (the “ Company Reliant Pools 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, 2023 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“ SEC Going Concern As shown in the accompanying consolidated financial statements, as of September 30, 2023, the Company had negative cash flows from operations, accumulated recurring losses, and $215,589 of cash on hand, which may not be sufficient to sustain operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management is actively pursuing new customers to increase revenues. In addition, the Company is currently seeking additional sources of capital to fund short-term operations. Management believes these factors will contribute toward achieving profitability. The consolidated financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company’s ability to continue as a going concern. These financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from estimates. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Revenue Recognition On January 1, 2018, we adopted Financial Accounting Standards Board (“ FASB ASC new revenue standard Revenue is recognized based on the following five step model: - Identification of the contract with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognition of revenue when, or as, the Company satisfies a performance obligation All of the Company’s revenue is currently generated from the design and installation of swimming pools. As such no further disaggregation of revenue information is provided. Pool Sale Revenues 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 Revenues for our contracts that satisfy the criteria for over-time recognition are 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. Performance Obligations Satisfied at a Point in Time Revenues for our contracts that do not satisfy the criteria for over-time recognition are 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, 2023, we had approximately $1,158,579 of remaining performance obligations on our construction contracts, which we also refer to as backlog. We expect to recognize our backlog as revenue during 2023. 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 prices 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 adjustments on any one contract were material to our consolidated financial statements for the three or nine months ended September 30, 2023. 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. Home sale revenues 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 Contract assets are presented as a current asset in the accompanying consolidated balance sheets, and 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 vehicles, is stated at cost. The Company depreciates the cost of equipment using the straight-line method over the estimated useful lives of the assets of 5-7 years for equipment. The estimated useful lives of the Company vehicles are five years. 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 renewal improvements are capitalized. During the nine months ended September 30, 2023 and 2022, depreciation expense was $11,705 and $11,724, respectively. Home and Real Estate Inventory Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. The specific identification method is used to accumulate home construction costs. We capitalize interest cost into homebuilding inventories. Interest expense is allocated over the period based on the timing of home closings. Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and closing costs applicable to the home. Sales commissions are classified within selling, general, and administrative expenses. The construction cost of the home includes amounts paid through the closing date of the home, plus an accrual for costs incurred but not yet paid. We assess the recoverability of our land inventory in accordance with the provisions of Accounting Standards Codification (“ ASC Earnin g s (Loss) Per Share In accordance with accounting guidance now codified as ASC Topic 260, “ Earnings (Loss) per Share, Recent Accountin g Pronouncements The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements. Reclassifications Certain prior period amounts have been reclassified for consistency with the current period presentation. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable | |
Accounts Receivable | Note 2. Accounts Receivable Accounts receivable consisted of the following: September 30, December 31, 2023 2022 Contract receivables $ 4,500 $ 3,000 Less: Allowance for doubtful accounts (3,000 ) (3,000 ) Accounts receivable, net $ 1,500 $ - The Company recognized no bad debt expense during the nine months ended September 30, 2023 and 2022, respectively. |
Contracts in Process
Contracts in Process | 9 Months Ended |
Sep. 30, 2023 | |
Contracts in Process | |
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, 2023 2022 Costs on uncompleted contracts $ 458,661 $ 1,185,212 Estimated earnings 161,151 416,426 619,812 1,601,638 Less: Progress billings 863,772 1,907,440 Contract liabilities, net $ (243,960 ) $ (305,802 ) The net asset (liability) position for contracts in process is included in the accompanying consolidated balance sheets as follows: September 30, 2023 December 31, 2022 Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) $ - $ 30,571 Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) (243,960 ) (336,373 ) Contract liabilities, net $ (243,960 ) $ (305,802 ) |
Concentration of Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2023 | |
Concentration of Risk | |
Concentration of Risk | Note 4. Concentration of Risk The Company had gross revenue of $1,773,489 and $3,438,580 for the nine months ended September 30, 2023 and 2022, respectively. There was one customer representing more than 10% of gross revenue for the nine months ended September 30, 2023, representing 14% of total revenue. There were no customers representing more than 10% of gross revenue for the nine months ended September 30, 2022. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions | |
Related Party Transactions | Note 5. Related Party Transactions The Company accrued bonus compensation related to services performed in the construction of the custom home to Michael Chavez, a greater than 10% shareholder of the Company, as a consultant to the Company, in the amount totaling $18,000 and $54,000, for the nine months ended September 30, 2023 and 2022, respectively. In addition, during the nine months ended September 30, 2023, the Company paid $50,000 of the accrued bonus compensation to Mr. Chavez. As of September 30, 2023, the Company has accrued a total of $16,000 in accrued bonus compensation. In addition, during the nine months ended September 30, 2023, Mr. Chavez contributed $5,825 to the Company to pay for expenses which have been recorded as a shareholder contribution. The Company accrued $37,500 in commission expenses to its CEO and sole board member, Mr. May, for services performed during the nine months ended September 30, 2023. As of September 30, 2023, the Company has accrued a total of $37,500 in accrued commission compensation. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity | |
Equity | Note 6. Equity Preferred Shares On June 15, 2021, the Company issued 1,000 shares of Series A Preferred Stock to Elijah May, the Company’s Chief Executive Officer and sole director in consideration for services rendered and to be rendered to the Company. Such shares of Series A Preferred Stock vote in aggregate fifty-one percent (51%) of the total vote on all shareholder matters, voting separately as a class. Notwithstanding such voting rights, no change in control of the Company was deemed to have occurred in connection with the issuance since Mr. May controlled the vote of 59.1% of the Company’s outstanding common stock at the time of the issuance of the Series A Preferred Stock and therefore controlled the Company prior to such issuance. The holder of the Series A Preferred Stock is not entitled to receive dividends, has no liquidation preference and no conversion rights. With the unanimous consent or approval of the board members, the Company has the option at its sole discretion to redeem any and all outstanding shares of Series A Preferred Stock for $1.00 per share. Common Shares 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 of 1933, as amended (the “ Securities Act 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 in 2009, Michael Chavez, the former President and former sole director, was barred from association with any Financial Industry Regulatory Authority, Inc. (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 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 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, constituted 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 held voting control over the Company due to his ability to vote 58.3% of the Company’s total outstanding shares of voting stock as of the date of the Voting Agreement. During the six months ended June 30, 2023, the Company issued 400,000 shares of restricted common stock to an employee of the Company for services rendered with a fair value of $36,000. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Leases | Note 7. Leases The Company leases approximately 1,000 square feet of office space in Austin, Texas. On March 28, 2022, the Company entered into a new lease agreement for the office space, which has a term of 24 months, through March 31, 2024, and a monthly rental cost of $1,515 for the period from April 1, 2022 to March 31, 2023 and $1,560 per month from April 1, 2023 to March 31, 2024, together with costs and expenses of approximately $725 per month for 2022. The real property lease contains provisions requiring payment of property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premise. As the Company’s leases do not provide implicit discount rates, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The components of lease expense were as follows: For the Nine Months Ended September 30, 2023 2022 Right of Use (ROU) Operating lease cost: Amortization of assets 21,388 6,006 Interest on lease liabilities 1,237 782 Total net lease cost $ 22,625 $ 6,788 Supplemental balance sheet information related to leases was as follows: September 30, December 31, 2023 2022 Operating lease: ROU Real Estate Asset $ 50,825 $ 50,825 Accumulated amortization (39,693 ) (18,305 ) Right of Use, net $ 11,132 $ 32,520 Current portion of lease liabilities $ 11,244 $ 25,940 Noncurrent lease liabilities - 6,783 Total lease liabilities $ 11,244 $ 32,723 Weighted average remaining lease term: Operating leases 0.75 years 1.25 years Weighted average discount rate: Operating lease 6.40 % 6.40 % |
Note Payable
Note Payable | 9 Months Ended |
Sep. 30, 2023 | |
Note Payable | |
Note Payable | Note 8. Note Payable September 30, 2023 December 31, 2022 Term note with a bank secured by car, payable in monthly installments of $660, including interest at 3.99% through February 27, 2025 $ 3,206 $ 10,494 Term note with a bank secured by car, payable in monthly installments of $1,000, including interest at 6.54% through May 26, 2027 - 2,000 Total long-term debt 3,206 12,494 Less: current portion (3,206 ) (9,630 ) Long-term debt net of current portion $ - $ 2,864 |
Construction Loan
Construction Loan | 9 Months Ended |
Sep. 30, 2023 | |
Construction Loan | |
Construction Loan | Note 9. Construction Loan Effective on November 1, 2021, the Company’s wholly–owned subsidiary, Reliant Custom Homes, Inc., entered into an Extension of Real Estate Note and Lien with First United Bank and Trust Co. (“First United”), pursuant to which First United agreed to extend the due date of our 221,000 borrowing facility in connection with the construction loan on our custom home, the construction of which has been completed, from October 28, 2021 to April 28, 2022. Effective on April 26, 2022, Reliant Custom Homes, Inc., entered into another Extension of Real Estate Note and Lien with First United pursuant to which First United agreed to extend the due date to October 28, 2022, and effective on October 28, 2022, Reliant Custom Homes, Inc., entered into another Extension of Real Estate Note and Lien with First United pursuant to which First United agreed to extend the due date to April 28, 2023. Effective May 1, 2023, Reliant Custom Homes, Inc., entered into another Extension of Real Estate Note and Lien with First United pursuant to which First United agreed to extend the due date to October 28, 2023, and effective on October 28, 2023, Reliant Custom Homes, Inc., entered into another Extension of Real Estate Note and Lien with First United pursuant to which First United agreed to extend the due date to April 28, 2024. Amounts borrowed under the loan bear interest at the rate of 6.25%, are secured by the land on which the Company has built a custom home, and are guaranteed by Reliant Pools, Inc., our wholly-owned subsidiary. As of September 30, 2023, the Company had borrowed $220,309 under the construction loan. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
The Company and Summary of Significant Accounting Policies | |
The Company | Reliant Holdings, Inc. (the “ Company Reliant Pools |
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, 2023 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“ SEC |
Going concern | As shown in the accompanying consolidated financial statements, as of September 30, 2023, the Company had negative cash flows from operations, accumulated recurring losses, and $215,589 of cash on hand, which may not be sufficient to sustain operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management is actively pursuing new customers to increase revenues. In addition, the Company is currently seeking additional sources of capital to fund short-term operations. Management believes these factors will contribute toward achieving profitability. The consolidated financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company’s ability to continue as a going concern. These financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Use of Estimates | The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from estimates. |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Revenue Recognition | On January 1, 2018, we adopted Financial Accounting Standards Board (“ FASB ASC new revenue standard Revenue is recognized based on the following five step model: - Identification of the contract with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognition of revenue when, or as, the Company satisfies a performance obligation All of the Company’s revenue is currently generated from the design and installation of swimming pools. As such no further disaggregation of revenue information is provided. Pool Sale Revenues 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 Revenues for our contracts that satisfy the criteria for over-time recognition are 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. Performance Obligations Satisfied at a Point in Time Revenues for our contracts that do not satisfy the criteria for over-time recognition are 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, 2023, we had approximately $1,158,579 of remaining performance obligations on our construction contracts, which we also refer to as backlog. We expect to recognize our backlog as revenue during 2023. 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 prices 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 adjustments on any one contract were material to our consolidated financial statements for the three or nine months ended September 30, 2023. 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. Home sale revenues |
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 | Contract assets are presented as a current asset in the accompanying consolidated balance sheets, and 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 vehicles, is stated at cost. The Company depreciates the cost of equipment using the straight-line method over the estimated useful lives of the assets of 5-7 years for equipment. The estimated useful lives of the Company vehicles are five years. 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 renewal improvements are capitalized. During the nine months ended September 30, 2023 and 2022, depreciation expense was $11,705 and $11,724, respectively. |
Home and Real Estate Inventory | Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. The specific identification method is used to accumulate home construction costs. We capitalize interest cost into homebuilding inventories. Interest expense is allocated over the period based on the timing of home closings. Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and closing costs applicable to the home. Sales commissions are classified within selling, general, and administrative expenses. The construction cost of the home includes amounts paid through the closing date of the home, plus an accrual for costs incurred but not yet paid. We assess the recoverability of our land inventory in accordance with the provisions of Accounting Standards Codification (“ ASC |
Earnings (Loss) Per Share | In accordance with accounting guidance now codified as ASC Topic 260, “ Earnings (Loss) per Share, |
Recent Accounting Pronouncements | The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements. |
Reclassification | Certain prior period amounts have been reclassified for consistency with the current period presentation. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable | |
Schedule of accounts receivable | Accounts receivable consisted of the following: September 30, December 31, 2023 2022 Contract receivables $ 4,500 $ 3,000 Less: Allowance for doubtful accounts (3,000 ) (3,000 ) Accounts receivable, net $ 1,500 $ - |
Contracts in Process (Tables)
Contracts in Process (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Contracts in Process | |
Schedule of net asset (liability) position for contracts in process | September 30, December 31, 2023 2022 Costs on uncompleted contracts $ 458,661 $ 1,185,212 Estimated earnings 161,151 416,426 619,812 1,601,638 Less: Progress billings 863,772 1,907,440 Contract liabilities, net $ (243,960 ) $ (305,802 ) |
Schedule for contracts in process included in consolidated balance sheets | September 30, 2023 December 31, 2022 Costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) $ - $ 30,571 Billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) (243,960 ) (336,373 ) Contract liabilities, net $ (243,960 ) $ (305,802 ) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Schedule Of Components of lease expense | For the Nine Months Ended September 30, 2023 2022 Right of Use (ROU) Operating lease cost: Amortization of assets 21,388 6,006 Interest on lease liabilities 1,237 782 Total net lease cost $ 22,625 $ 6,788 |
Schedule for Supplemental balance sheet | September 30, December 31, 2023 2022 Operating lease: ROU Real Estate Asset $ 50,825 $ 50,825 Accumulated amortization (39,693 ) (18,305 ) Right of Use, net $ 11,132 $ 32,520 Current portion of lease liabilities $ 11,244 $ 25,940 Noncurrent lease liabilities - 6,783 Total lease liabilities $ 11,244 $ 32,723 Weighted average remaining lease term: Operating leases 0.75 years 1.25 years Weighted average discount rate: Operating lease 6.40 % 6.40 % |
Note Payable (Tables)
Note Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Note Payable | |
Schedule of long term debt | September 30, 2023 December 31, 2022 Term note with a bank secured by car, payable in monthly installments of $660, including interest at 3.99% through February 27, 2025 $ 3,206 $ 10,494 Term note with a bank secured by car, payable in monthly installments of $1,000, including interest at 6.54% through May 26, 2027 - 2,000 Total long-term debt 3,206 12,494 Less: current portion (3,206 ) (9,630 ) Long-term debt net of current portion $ - $ 2,864 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue recognition related to Home and Land revenue | $ 0 | $ 0 |
Cash on hand | 215,589 | |
Depreciation expense | $ 11,705 | 11,724 |
Construction contracts description | The majority of our revenue is derived from construction contracts and projects that typically span between 4 to 12 months | |
Impairment charges | $ 0 | $ 0 |
Remaining performance obligations | $ 1,158,579 | |
Minimum [Member] | ||
Estimated useful lives | 5 years | |
Maximum [Member] | ||
Estimated useful lives | 7 years |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts Receivable | ||
Contract receivables | $ 4,500 | $ 3,000 |
Less: Allowance for doubtful accounts | (3,000) | (3,000) |
Accounts receivable, net | $ 1,500 | $ 0 |
Contracts in Process (Details)
Contracts in Process (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Contracts in Process | ||
Costs on uncompleted contracts | $ 458,661 | $ 1,185,212 |
Estimated earnings | 161,151 | 416,426 |
Total Costs and Estimated Earnings | 619,812 | 1,601,638 |
Less: Progress billings | 863,772 | 1,907,440 |
Contract liabilities, net | $ (243,960) | $ (305,802) |
Contracts in Process (Details 1
Contracts in Process (Details 1) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Contracts in Process | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 0 | $ 30,571 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (243,960) | (336,373) |
Contract liabilities, net | $ (243,960) | $ (305,802) |
Concentration of Risk (Details
Concentration of Risk (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | $ 1,773,489 | $ 3,438,580 |
Concentration Risk | 10% | |
Revenue [Member] | ||
Concentration Risk | 14% | |
One Customer [Member] | ||
Concentration Risk | 10% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accrued commission compensation | $ 37,500 | $ 37,500 | |
Shareholder contribution | 5,825 | ||
Mr. Chavez [Member] | |||
Compensation to related party | 18,000 | $ 54,000 | |
Accrued bonus compensation total | 16,000 | 16,000 | |
Payment of bonus compensation amount | 50,000 | ||
Shareholder contribution | 5,825 | ||
Mr. May [Member] | |||
Accrued commission compensation | $ 37,500 | $ 37,500 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 9 Months Ended | 29 Months Ended | ||
Nov. 03, 2017 | Jun. 15, 2021 | Jan. 27, 2021 | Jun. 30, 2023 | Sep. 30, 2016 | Sep. 30, 2016 | |
Sale of stock, amount | $ 57,950 | |||||
Shares issued for services, shares | 400,000 | |||||
Shares issued for services, amount | $ 36,000 | |||||
Elijah May [Member] | Voting Agreement [Member] | ||||||
Common stock shares held by related party | 4,500,000 | |||||
Ownership percentage | 58.30% | |||||
Michael Chavez [Member] | ||||||
Common stock shares held by related party | 4,000,000 | 4,000,000 | ||||
Ownership percentage | 27.40% | |||||
Restricted Stock Member | ||||||
Sale of stock, amount | $ 44,250 | |||||
Sale of stock, shares | 885,000 | |||||
Share price (per share) | $ 0.05 | $ 0.05 | ||||
Restricted Stock Member | Lilia Chavez [Member] | ||||||
Sale of stock, amount | $ 500 | |||||
Sale of stock, shares | 10,000 | |||||
Restricted Stock Member | Phyllis Laws [Member] | ||||||
Sale of stock, amount | $ 250 | |||||
Sale of stock, shares | 5,000 | |||||
Restricted Stock Member | Alexander Spohn [Member] | ||||||
Sale of stock, amount | $ 250 | |||||
Sale of stock, shares | 5,000 | |||||
Series A Preferred Stock[Member] | Elijah May [Member] | ||||||
Share price (per share) | $ 1 | |||||
Preferred stock designated shares | 1,000 | |||||
Preferred stock voting description | Such shares of Series A Preferred Stock vote in aggregate fifty-one percent (51%) of the total vote on all shareholder matters, voting separately as a class |
Leases (Details)
Leases (Details) - USD ($) | 6 Months Ended | 9 Months Ended |
Jun. 30, 2023 | Sep. 30, 2022 | |
Leases | ||
Amortization of assets | $ 21,388 | $ 6,006 |
Interest on lease liabilities | 1,237 | 782 |
Total net lease cost | $ 22,625 | $ 6,788 |
Leases (Details 1)
Leases (Details 1) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Operating lease: | ||
ROU Real Estate Asset | $ 50,825 | $ 50,825 |
Accumulated amortization | (39,693) | (18,305) |
Right of Use, net | 11,132 | 32,520 |
Current portion of lease liabilities | 11,244 | 25,940 |
Noncurrent lease liabilities | 0 | 6,783 |
Total lease liabilities | $ 11,244 | $ 32,723 |
Weighted average remaining lease term operating leases | 9 months | 1 year 3 months |
Weighted average discount rate operating leases | 6.40% | 6.40% |
Leases (Details Narrative)
Leases (Details Narrative) | 1 Months Ended | 9 Months Ended |
Mar. 28, 2022 | Sep. 30, 2023 USD ($) ft² | |
Office space | ft² | 1,000 | |
Lease term | 24 months | |
Costs and expenses per month | $ 725 | |
April 1, 2022 to March 31, 2023 | ||
Monthly rental cost | 1,515 | |
April 1, 2023 to March 31, 2024 | ||
Monthly rental cost | $ 1,560 |
Note Payable (Details)
Note Payable (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt instrument maturity date | Oct. 28, 2023 | |
Total long term debt | $ 3,206 | $ 12,494 |
Less: current portion | (3,206) | (9,630) |
Long-term debt net of current portion | 0 | 2,864 |
Note payable | ||
Debt instrument monthly installments | $ 660 | |
Debt instrument interest rate | 3.99% | |
Debt instrument maturity date | Feb. 27, 2025 | |
Total long term debt | $ 3,206 | 10,494 |
Note payable one | ||
Debt instrument monthly installments | $ 1,000 | |
Debt instrument interest rate | 6.54% | |
Debt instrument maturity date | May 26, 2027 | |
Total long term debt | $ 0 | $ 2,000 |
Construction Loan (Details Narr
Construction Loan (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Loan amount | $ 221,000 | |
Construction loan maturity date | Apr. 28, 2023 | |
Extension maturity date | Oct. 28, 2023 | |
Rate of interest | 6.25% | |
Construction loan | $ 220,309 | $ 186,404 |
Reliant Custom Homes, Inc. [Member] | ||
Extension maturity date | Apr. 28, 2024 |