Cover
Cover | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | Harbor Custom Development, Inc. |
Entity Central Index Key | 0001784567 |
Entity Primary SIC Number | 1531 |
Entity Tax Identification Number | 46-4827436 |
Entity Incorporation, State or Country Code | WA |
Entity Address, Address Line One | 11505 Burnham Dr. |
Entity Address, Address Line Two | Suite 301 |
Entity Address, City or Town | Gig Harbor |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 98332 |
City Area Code | (253) |
Local Phone Number | 649-0636 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | |||
Real Estate | $ 85,217,800 | $ 20,370,300 | $ 24,826,700 |
Property, Plant and Equipment, net | 8,438,800 | 8,176,000 | 5,071,900 |
Right of Use Assets | 877,400 | 873,800 | 1,132,700 |
Cash | 12,785,600 | 2,396,500 | 430,000 |
Prepaid Expense | 847,600 | 1,658,000 | 117,600 |
Accounts Receivable, net | 61,900 | 78,200 | 11,800 |
Contract Assets, net | 1,481,500 | ||
Deferred Offering Costs | 65,100 | ||
Deferred Tax Asset | 171,600 | ||
TOTAL ASSETS | 109,710,600 | 33,617,900 | 31,762,300 |
LIABILITIES | |||
Construction Loans, net of Debt Discount | 26,456,600 | 9,590,100 | 9,499,300 |
Construction Loans - Related Parties, net of Debt Discount | 10,352,600 | 5,819,700 | 14,523,200 |
Equipment Loans | 5,418,900 | 5,595,500 | 3,476,800 |
Accounts Payable and Accrued Expenses | 5,908,000 | 2,700,000 | 3,770,400 |
Right of Use Liabilities | 852,900 | 841,700 | 1,115,500 |
Finance Leases | 759,100 | 999,400 | 520,700 |
Deferred Revenue | 14,500 | 896,300 | 73,200 |
Note Payable PPP | 2,200 | 19,300 | |
Dividends Payable | 140,100 | ||
Note Payable D&O Insurance | 0 | 741,200 | |
Due to Related Party | 8,100 | ||
TOTAL LIABILITIES | 49,904,900 | 27,203,200 | 32,987,200 |
COMMITMENTS AND CONTINGENCIES (See Note 10) | |||
STOCKHOLDERS’ EQUITY (DEFICIT) | |||
Preferred Stock, Value | 28,661,000 | ||
Common Stock, Value | 37,057,900 | 11,956,900 | 670,900 |
Additional Paid in Capital | 483,700 | 234,800 | 119,100 |
Accumulated Deficit | (5,105,300) | (4,487,100) | (954,300) |
Total Stockholders’ Equity (Deficit) | 61,097,300 | 7,704,600 | (164,300) |
Non-Controlling Interest | (1,291,600) | (1,289,900) | (1,060,600) |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | 59,805,700 | 6,414,700 | (1,224,900) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ 109,710,600 | $ 33,617,900 | $ 31,762,300 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | |||
Debt Instrument, Unamortized Discount | $ 1,067,100 | $ 502,400 | $ 148,400 |
Construction Loans - Related Parties, net of Debt Discount | $ 1,897,600 | $ 670,200 | $ 853,800 |
Preferred Stock, no par value | $ 0 | $ 0 | $ 0 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 1,260,555 | 0 | 0 |
Preferred Stock, shares outstanding | 1,260,555 | 0 | 0 |
Common Stock, no par value | $ 0 | $ 0 | $ 0 |
Common Stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Common Stock, shares issued | 14,898,594 | 5,636,548 | 3,513,517 |
Common Stock, shares outstanding | 14,898,594 | 5,636,548 | 3,513,517 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||||
Sales | $ 14,132,400 | $ 8,329,800 | $ 28,006,600 | $ 18,270,800 | $ 50,397,000 | $ 30,953,500 |
Cost of Sales | 10,805,100 | 7,436,000 | 24,072,100 | 17,264,200 | 48,393,800 | 27,645,100 |
Gross Profit | 3,327,300 | 893,800 | 3,934,500 | 1,006,600 | 2,003,200 | 3,308,400 |
Operating Expenses | 2,267,800 | 1,282,300 | 4,317,600 | 2,311,700 | 5,493,900 | 3,466,800 |
Operating Loss | 1,059,500 | (388,500) | (383,100) | (1,305,100) | (3,490,700) | (158,400) |
Other Income (Expense) | ||||||
Loss on Sale of Equipment | (35,900) | (15,500) | (267,700) | |||
Forgiveness of Debt PPP Loan | 10,000 | 562,300 | ||||
Other Income (Expense) | 95,200 | 13,000 | 112,600 | 13,000 | ||
Other Income | 4,000 | 79,100 | ||||
Other Expenses | (70,300) | |||||
Interest Expense | (85,300) | (18,700) | (183,400) | (90,300) | (382,900) | (358,300) |
Total Other Income (Expense) | 9,900 | (5,700) | (96,700) | (92,800) | (154,600) | (279,200) |
Loss Before Income Tax | 1,069,400 | (394,200) | (479,800) | (1,397,900) | (3,645,300) | (437,600) |
Income Tax Benefit (Expense) | (39,900) | (10,100) | (116,800) | 634,600 | ||
Net Income (Loss) | 1,069,400 | (434,100) | (479,800) | (1,408,000) | (3,762,100) | 197,000 |
Net Loss Attributable to Non-controlling interest | (2,300) | (3,000) | (1,700) | (224,900) | (229,300) | (38,600) |
Preferred Dividends | (140,100) | (140,100) | ||||
Net Income (Loss) Attributable to Stockholders | $ 931,600 | $ (431,100) | $ (618,200) | $ (1,183,100) | $ (3,532,800) | $ 235,600 |
Net Income (Loss) Per Share - Basic | $ 0.06 | $ (0.12) | $ (0.04) | $ (0.34) | $ (0.84) | $ 0.07 |
Net Income (Loss) Per Share - Diluted | $ 0.06 | $ (0.12) | $ (0.04) | $ (0.34) | (0.84) | 0.07 |
Net Income (Loss) Per Share - Basic and Diluted | $ (0.84) | $ 0.07 | ||||
Weighted Average Common Shares Outstanding - Basic | 14,890,094 | 3,513,517 | 14,071,373 | 3,513,517 | 4,214,418 | 3,513,517 |
Weighted Average Common Shares Outstanding - Diluted | 15,052,525 | 3,513,517 | 14,071,373 | 3,513,517 | 4,214,418 | 3,513,517 |
Weighted Average Common Shares Outstanding - Basic and Diluted | 4,214,418 | 3,513,517 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | $ (479,800) | $ (1,408,000) | $ (3,762,100) | $ 197,000 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) used in operating activities: | ||||
Depreciation | 483,100 | 285,900 | 619,800 | 427,600 |
Amortization of right of use assets | 163,200 | 128,600 | 258,900 | 153,500 |
Forgiveness of PPP loan | (10,000) | (562,300) | ||
Loss on sale of equipment | 35,900 | 15,500 | 267,700 | |
Stock compensation | 230,900 | 1,100 | 115,700 | 7,100 |
Net change in assets and liabilities: | ||||
Accounts receivable | 16,300 | (206,900) | (66,400) | 40,200 |
Contract assets | (1,481,500) | |||
Prepaid expenses | 810,400 | (440,200) | (314,900) | (102,900) |
Real estate | (63,469,900) | (2,124,400) | 6,755,900 | (6,089,900) |
Deferred revenue | (881,800) | 1,301,900 | 823,100 | 73,200 |
Deferred income tax | 10,100 | 171,600 | (634,600) | |
Income tax payable | (54,800) | |||
Payments on right of use liability | (155,600) | (145,400) | (273,800) | (170,700) |
Accounts payable and accrued expenses | 3,208,000 | (319,300) | (1,015,400) | 2,969,400 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (61,530,800) | (2,901,100) | 3,017,800 | (3,184,900) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of property and equipment | (175,100) | (321,800) | (408,000) | (402,800) |
Proceeds on the sale of equipment | 69,500 | 145,400 | 987,200 | |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (105,600) | (176,400) | 579,200 | (402,800) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Construction loans, net | 17,431,200 | 7,904,400 | 444,800 | (7,524,600) |
Financing fees construction loans | (1,185,700) | (138,200) | (1,048,700) | (1,289,100) |
Construction loans related parties, net | 5,760,200 | (5,200,800) | (8,445,100) | 13,720,800 |
Financing fees related party construction loans | (1,983,900) | (1,421,200) | ||
Payments on financing leases | (141,200) | (179,500) | (564,400) | (185,100) |
Proceeds from note payable PPP | 582,800 | |||
Payments on PPP loan | (7,100) | 582,800 | (1,200) | |
Due to related party | 39,300 | (8,100) | 8,100 | |
Repayments for note payable D&O | (741,200) | (484,300) | ||
Net proceeds from issuance of common stock | 25,101,000 | 10,789,000 | ||
Net proceeds from issuance of preferred stock | 28,661,000 | |||
Repayment for equipment loans | (951,900) | (27,700) | (1,409,000) | (444,900) |
Proceeds from exercise of stock options | 18,000 | |||
Distributions | (488,400) | |||
Deferred offering cost | 65,100 | (65,100) | ||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 72,025,500 | 2,980,300 | (1,630,500) | 3,796,800 |
NET INCREASE IN CASH AND RESTRICTED CASH | 10,389,100 | (97,200) | 1,966,500 | 209,100 |
CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD | 2,396,500 | 430,000 | 430,000 | 220,900 |
CASH AND RESTRICTED CASH AT END OF PERIOD | 12,785,600 | 332,800 | 2,396,500 | 430,000 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||||
Interest | 1,915,700 | 90,300 | 1,266,300 | 352,800 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||
Financing of assets additions | 775,300 | 258,100 | 4,570,800 | 2,924,500 |
New right of use obligations | 166,800 | |||
Cancellation of finance leases | 99,100 | |||
Amortization of debt discount capitalized | $ 1,347,800 | $ 500,400 | 2,299,500 | 738,400 |
Distribution of land | 356,500 | |||
Right of use asset | 1,286,000 | |||
Stock issued for conversion of related interest and principal | 497,000 | |||
Financing of D&O insurance | $ 1,225,500 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2018 | $ 670,900 | $ 112,000 | $ (577,600) | $ 205,300 | $ (789,400) | $ (584,100) | |
Beginning balance, shares at Dec. 31, 2018 | 3,513,517 | ||||||
Distributions | (116,800) | (116,800) | (232,600) | $ (349,400) | |||
Exercise of stock options, shares | |||||||
Stock Compensation Expense | 5,500 | 5,500 | $ 5,500 | ||||
Issuance of Warrants | 1,600 | 1,600 | 1,600 | ||||
Transfer of land to Owner | (495,500) | (495,500) | (495,500) | ||||
Net (Loss) | 235,600 | 235,600 | (38,600) | 197,000 | |||
Ending balance, value at Dec. 31, 2019 | $ 670,900 | 119,100 | (954,300) | (164,300) | (1,060,600) | (1,224,900) | |
Ending balance, shares at Dec. 31, 2019 | 3,513,517 | ||||||
Net (Loss) | (752,000) | (752,000) | (221,900) | (973,900) | |||
Ending balance, value at Mar. 31, 2020 | $ 670,900 | 119,100 | (1,706,300) | (916,300) | (1,282,500) | (2,198,800) | |
Ending balance, shares at Mar. 31, 2020 | 3,513,517 | ||||||
Beginning balance, value at Dec. 31, 2019 | $ 670,900 | 119,100 | (954,300) | (164,300) | (1,060,600) | (1,224,900) | |
Beginning balance, shares at Dec. 31, 2019 | 3,513,517 | ||||||
Net (Loss) | (1,408,000) | ||||||
Ending balance, value at Jun. 30, 2020 | $ 670,900 | 120,200 | (2,137,400) | (1,346,300) | (1,285,500) | (2,631,800) | |
Ending balance, shares at Jun. 30, 2020 | 3,513,517 | ||||||
Beginning balance, value at Dec. 31, 2019 | $ 670,900 | 119,100 | (954,300) | (164,300) | (1,060,600) | (1,224,900) | |
Beginning balance, shares at Dec. 31, 2019 | 3,513,517 | ||||||
Net proceeds issuance of stock | $ 10,789,000 | 10,789,000 | $ 10,789,000 | ||||
Net proceeds issuance of stock, shares | 2,031,705 | ||||||
Exercise of stock options, shares | |||||||
Conversion of Olympic View debt to stock | $ 497,000 | 497,000 | $ 497,000 | ||||
Conversion of Olympic View debt to stock, shares | 82,826 | ||||||
Stock Compensation Expense | 115,700 | 115,700 | 115,700 | ||||
Stock Compensation Expense, shares | 8,500 | ||||||
Net (Loss) | (3,532,800) | (3,532,800) | (229,300) | (3,762,100) | |||
Ending balance, value at Dec. 31, 2020 | $ 11,956,900 | 234,800 | (4,487,100) | 7,704,600 | (1,289,900) | 6,414,700 | |
Ending balance, shares at Dec. 31, 2020 | 5,636,548 | ||||||
Beginning balance, value at Mar. 31, 2020 | $ 670,900 | 119,100 | (1,706,300) | (916,300) | (1,282,500) | (2,198,800) | |
Beginning balance, shares at Mar. 31, 2020 | 3,513,517 | ||||||
Stock Compensation Expense | 1,100 | 1,100 | 1,100 | ||||
Net (Loss) | (431,100) | (431,100) | (3,000) | (434,100) | |||
Ending balance, value at Jun. 30, 2020 | $ 670,900 | 120,200 | (2,137,400) | (1,346,300) | (1,285,500) | (2,631,800) | |
Ending balance, shares at Jun. 30, 2020 | 3,513,517 | ||||||
Beginning balance, value at Dec. 31, 2020 | $ 11,956,900 | 234,800 | (4,487,100) | 7,704,600 | (1,289,900) | 6,414,700 | |
Beginning balance, shares at Dec. 31, 2020 | 5,636,548 | ||||||
Net proceeds issuance of stock | $ 25,101,000 | 25,101,000 | 25,101,000 | ||||
Net proceeds issuance of stock, shares | 9,200,000 | ||||||
Exercise of stock options | 18,000 | 18,000 | 18,000 | ||||
Exercise of stock options, shares | 45,046 | ||||||
Stock Compensation Expense | 115,100 | 115,100 | 115,100 | ||||
Stock Compensation Expense, shares | 8,500 | ||||||
Net (Loss) | (1,549,800) | (1,549,800) | 600 | (1,549,200) | |||
Ending balance, value at Mar. 31, 2021 | $ 37,057,900 | 367,900 | (6,036,900) | 31,388,900 | (1,289,300) | 30,099,600 | |
Ending balance, shares at Mar. 31, 2021 | 14,890,094 | ||||||
Beginning balance, value at Dec. 31, 2020 | $ 11,956,900 | 234,800 | (4,487,100) | 7,704,600 | (1,289,900) | 6,414,700 | |
Beginning balance, shares at Dec. 31, 2020 | 5,636,548 | ||||||
Net (Loss) | (479,800) | ||||||
Ending balance, value at Jun. 30, 2021 | $ 37,057,900 | $ 28,661,000 | 483,700 | (5,105,300) | 61,097,300 | (1,291,600) | 59,805,700 |
Ending balance, shares at Jun. 30, 2021 | 14,898,594 | 1,260,555 | |||||
Beginning balance, value at Mar. 31, 2021 | $ 37,057,900 | 367,900 | (6,036,900) | 31,388,900 | (1,289,300) | 30,099,600 | |
Beginning balance, shares at Mar. 31, 2021 | 14,890,094 | ||||||
Net proceeds issuance of preferred stock | $ 28,661,000 | 28,661,000 | 28,661,000 | ||||
Net proceeds issuance of preferred stock, shares | 1,260,555 | ||||||
Dividends | (140,100) | (140,100) | (140,100) | ||||
Stock Compensation Expense | 115,800 | 115,800 | 115,800 | ||||
Stock Compensation Expense, shares | 8,500 | ||||||
Net (Loss) | 1,071,700 | 1,071,700 | (2,300) | 1,069,400 | |||
Ending balance, value at Jun. 30, 2021 | $ 37,057,900 | $ 28,661,000 | $ 483,700 | $ (5,105,300) | $ 61,097,300 | $ (1,291,600) | $ 59,805,700 |
Ending balance, shares at Jun. 30, 2021 | 14,898,594 | 1,260,555 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. Nature of Operations The Company’s principal business activity involves acquiring raw land and developed lots for the purpose of building and selling single family and multi-family dwellings in Washington, California, Texas and Florida. It utilizes its heavy equipment resources to develop an inventory of finished lots and provide development infrastructure construction, on a contract basis, for other home builders. Single family construction and infrastructure construction contracts vary but are typically less than one year. On August 1, 2019, the Company changed its name from Harbor Custom Homes, Inc. to Harbor Custom Development, Inc. The Company became an effective filer with the Securities and Exchange Commission SEC and started trading on The Nasdaq Stock Market LLC (“Nasdaq”) on August 28, 2020. Principles of Consolidation The consolidated financial statements include the following subsidiaries of Harbor Custom Development, Inc. as of the reporting period ending dates as follows (all entities are formed as Washington LLCs): SCHEDULE OF STATEMENT OF SUBSIDIARIES Names Dates of Formation Attributable Interest June 30, December 31, 2021 2020 Saylor View Estates, LLC March 30, 2014 51 % 51 % Harbor Materials, LLC* July 5, 2018 N/A 100 % Belfair Apartments, LLC December 3, 2019 100 % 100 % Pacific Ridge CMS, LLC May 24, 2021 100 % N/A Tanglewilde, LLC June 25, 2021 100 % N/A * Harbor Materials, LLC was voluntarily dissolved with the State of Washington as of January 29, 2021. All intercompany transactions and balances have been eliminated in consolidation. As of June 30, 2021 and December 31, 2020, the aggregate non-controlling interest was $ (1,291,600) (1,289,900) Basis of Presentation The unaudited financial information furnished herein reflects all adjustments, consisting solely of normal recurring items, which in the opinion of management are necessary to fairly state the financial position of the Company and the results of its operations for the periods presented. This report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the (“SEC”) on March 31, 2021. The Company assumes that the users of the interim financial information herein have read or have access to the audited financial statements for the preceding fiscal year and the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The condensed consolidated balance sheet at December 31, 2020 was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The results of operations for the interim periods presented are not necessarily indicative of results for the year ending December 31, 2021. The Company’s Board of Directors and stockholders approved a 1-for-2.22 reverse split of the Company’s common stock, which was effected on April 15, 2020. The reverse split combined each 2.22 shares of the Company’s outstanding common stock into one share of common stock. as if it had occurred at the beginning of the earliest period presented. All numbers in these financial statements are rounded to the nearest $100. Use of Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used. Stock-Based Compensation Effective as of November 19, 2018, the Company’s Board of Directors and stockholders approved and adopted the 2018 Incentive and Non-Statutory Stock Option Plan (the “2018 Plan”). The 2018 Plan allows the Administrator (as defined in the 2018 Plan), currently the Board of Directors, to determine the issuance of incentive stock options and non-qualified stock options to eligible employees and outside directors and consultants of the Company. The Company reserved 675,676 Effective as of December 3, 2020, the Company’s Board of Directors and stockholders approved and adopted the 2020 Restricted Stock Plan (the “2020 Plan”). The 2020 Plan allows the Administrator (currently the Compensation Committee) to determine the issuance of restricted stock to eligible officers, directors, and key employees. The Company reserved 700,000 The Company accounts for stock-based compensation in accordance with ASC Topic 718, “ Compensation – Stock Compensation” The Company recognizes all forms of share-based payments, including stock option grants, warrants and restricted stock grants, at their fair value on the grant date, which is based on the estimated number of awards that are ultimately expected to vest. Options and warrants are valued using a Black-Scholes option pricing model. Grants of share-based payment awards issued to non-employees for services rendered have been recorded at the fair value of the share-based payment. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation expense is reversed in the period related to the termination of service. Stock-based compensation expenses are included in selling, general and administrative expenses in the consolidated statement of operations. For the six months ended June 30, 2021 and 2020 when computing fair value of share-based payments, the Company has considered the following variables: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS June 30, 2021 June 30, 2020 Risk-free interest rate 0.23 0.84 1.46 % Exercise price $ 3.36 5.00 $ 2.22 Expected life of grants 2.50 6 5.64 Expected volatility of underlying stock 42.97 56.13 32.39 % Dividends 0 0 The expected term is computed using the “simplified” method as permitted under the provisions of ASC 718-10-S99. The Company uses the simplified method to calculate the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The share price as of the grant date was determined by an independent third party 409(a) valuation until the Company’s stock became publicly traded. Now the share price is the public trading price at the time of grant. Expected volatility is based on the historical stock price volatility of comparable companies’ common stock, as the stock does not have sufficient historical trading activity. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. Earnings (Loss) Per Share Earnings (Loss) per share (“EPS”) is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to Section 260-10-45 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss attributable to common stockholders per common share. SCHEDULE OF NET INCOME (LOSS) PER SHARE 1 2 3 4 For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net income (loss) attributable to common stockholders $ 931,600 $ (431,100 ) (618,200 ) $ (1,183,100 ) Effect of dilutive securities: - - - - Diluted income (net) loss $ 931,600 $ (431,100 ) (618,200 ) $ (1,183,100 ) Denominator: Weighted average common shares outstanding - basic 14,890,094 3,513,517 14,071,373 3,513,517 Dilutive securities (a): Options 19,778 - - - Warrants 142,653 - - - Weighted average common shares outstanding and assumed 15,052,525 3,513,517 14,071,373 3,513,517 conversion – diluted Basic net income (loss) per common share $ 0.06 $ (0.12 ) (0.04 ) $ (0.34 ) Diluted net income (loss) per common share $ 0.06 $ (0.12 ) (0.04 ) $ (0.34 ) (a) - Anti-dilutive securities excluded: 10,570,115 152,032 10,777,506 152,032 Fair Value of Financial Instruments For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with a maturity of three months or less to be cash equivalents. There were no Accounts Receivable Accounts receivables are reported at the amount the Company expects to collect from outstanding balances. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. The Company determines if receivables are past due based on days outstanding, and amounts are written off when determined to be uncollectible by management. The allowance for doubtful accounts was $ 11,000 0 Property and Equipment and Depreciation Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method (after considering their respective estimated residual values) over the estimated useful lives: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Construction Equipment 5 10 Leasehold Improvements The lesser of 10 years or the remaining life of the lease Furniture and Fixtures 5 Computers 3 Vehicles 10 Real Estate Assets Real estate assets are recorded at cost, except when real estate assets are acquired that meet the definition of a business combination in accordance with FASB ASC 805, “Business Combinations,” where acquired assets are recorded at fair value. Interest, property taxes, insurance and other incremental costs (including salaries) directly related to a project are capitalized during the construction period of major facilities and land improvements. The capitalization period begins when activities to develop the parcel commence and ends when the asset constructed is completed. The capitalized costs are recorded as part of the asset to which they relate and are expensed when the underlying asset is sold. The Company capitalized interest from related party borrowings of $ 219,100 323,300 404,400 636,400 264,900 657,900 475,800 1,051,000 A property is classified as “held for sale” when all the following criteria for a plan of sale have been met: (1) Management, having the authority to approve the action, commits to a plan to sell the property; (2) The property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (3) An active program to locate a buyer and other actions required to complete the plan to sell, have been initiated; (4) The sale of the property is probable and is expected to be completed within one year of the contract date; (5) The property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) Actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When all these criteria have been met, the property is classified as “held for sale.” In addition to the annual assessment of potential triggering events in accordance with ASC 360, the Company applies a fair value-based impairment test to the net book value assets on an annual basis and on an interim basis if certain events or circumstances indicate that an impairment loss may have occurred. As of June 30, 2021 and December 31, 2020, the Company did not have any projects that qualified for an impairment charge. Revenue and Cost Recognition ASC 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contract to provide goods or services to customers. In accordance with ASC 606, revenue is recognized when a customer obtains control of the promised good or service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods or services. The provision of ASC 606 includes a five-step process by which the Company determines revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which the Company expects to be entitled in exchange for those goods or services. ASC 606 requires the Company to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, performance obligations are satisfied. A detailed breakdown of the five-step process for the revenue recognition of Entitled Land Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a buyer to purchase the parcel of entitled land. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering entitled land to the customer, which are required to meet certain specifications outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract The parcel is a separate performance obligation for which the specific price is in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Developed Lots Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with the buyer to purchase lots that have completed infrastructure. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering developed lots to the customer, which are required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract All lots are a single performance obligation for the specific price in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Fee Build Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a customer to construct the required infrastructure so that houses can be developed on the lots. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering developed lots which are required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract The nature of the industry involves a number of uncertainties that can affect the current state of the contract. Variable considerations are the estimates made due to a contract modification in the contractual service. Change orders, claims, extras, or back charges are common in contractual services activity as a form of variable consideration. If there is going to be a contract modification, judgment by management will need to be made to determine if the variable consideration is enforceable. The following factors are considered in determining if the variable consideration is enforceable: 1. The customer’s written approval of the scope of the change order; 2. Current contract language that indicates clear and enforceable entitlement relating to the change order; 3. Separate documentation for the change order costs that are identifiable and reasonable; and 4. The Company’s experience in negotiating change orders, especially as it relates to the specific type of contract and change order being evaluated Once the Company receives a contract, it generates a budget of projected costs for the contract based on the contract price. If the scope of the contract during the contractual period needs to be modified, the Company files a change order. The Company does not continue to perform services until the change modification is agreed upon with documentation by both the Company and the customer. There are few times that claims, extras, or back charges are included in the contract. If there are multiple performance obligations to the contract, the costs must be allocated appropriately and consistently to each performance obligation. In the Company’s experience, usually only one performance obligation is stated per contract. If there are multiple services provided for one customer, the Company has a policy of splitting out the services over multiple contracts. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company uses the total costs incurred on the project relative to the total expected costs to satisfy the performance obligation. The input method involves measuring the resources consumed, labor hours expended, costs incurred, time lapsed, or machine hours used relative to the total expected inputs to the satisfaction of the performance obligation. Costs incurred prior to actual contract (i.e. design, engineering, procurement of material, etc.) should not be recognized as the client does not have control of the good/service provided. When the estimate on a contract indicates a loss or claims against costs incurred reduce the likelihood of recoverability of such costs, the Company records the entire estimated loss in the period the loss becomes known. Project contracts typically provide for a schedule of billings or invoices to the customer based on the Company’s job to date percentage of completion of specific tasks inherent in the fulfillment of its performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in the statement of operations can and usually does differ from amounts that can be billed or invoiced to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceed cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in the Company’s balance sheet under the captions “Contract Asset” which is further disclosed in Note 14. Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized on the contract are reflected as a current liability in the Company’s balance sheet under the caption “Billings in excess of costs and estimated earnings.” A detailed breakdown of the five-step process for the revenue recognition of Home Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a home buyer to purchase a lot with a completed house. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering a developed lot with a completed house to the customer, which is required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract Each lot with a completed house is a separate performance obligation, for which the specific price in the contract is allocated. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Construction Materials sold to or received from contractors is as follows: 1. Identify the contract with a customer. There are no signed contracts. Each transaction is verbally agreed to with the customer. 2. Identify the performance obligations in the contract. The Company delivers or receives materials from customers based on the verbal agreement reached. 3. Determine the transaction price. The Company has a set price list for receiving approved fill materials to recycle or provides customers with a combination of said materials. 4. Allocation of the transaction price to performance obligations in the contract. There is only one performance obligation, which is to pick up or deliver the materials. The entire transaction price is therefore allocated to the performance obligation. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The performance obligation is fulfilled, and revenue is recognized when the materials have been received or delivered by the Company. Revenues from contracts with customers are summarized by category as follows for the three and six months ended June 30: SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS 2021 2020 2021 2020 For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Entitled Land $ 9,310,000 $ - $ 9,310,000 $ - Developed Lots - - 7,000,000 - Fee Build 1,348,200 - 1,348,200 - Homes 3,371,700 8,016,400 10,185,900 17,921,000 Construction Materials 102,500 313,400 162,500 349,800 Total Revenue $ 14,132,400 $ 8,329,800 $ 28,006,600 $ 18,270,800 Disaggregation of Revenue from Contracts with Customers The following table disaggregates the Company’s revenue based on the type of sale or service and the timing of satisfaction of performance obligations for the three and six months ended June 30, 2021 and 2020: DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS 2021 2020 2021 2020 For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Performance obligations satisfied at a point in time $ 12,784,200 $ 8,329,800 $ 26,658,400 $ 18,270,800 Performance obligations satisfied over time 1,348,200 - 1,348,200 - Total Revenue $ 14,132,400 $ 8,329,800 $ 28,006,600 $ 18,270,800 Cost of Sales Land acquisition costs are allocated to each lot based on the size of the lot in relation to the size of the total project. Development cost and capitalized interest are allocated to lots sold based on the same criteria. Cost relating to the handling of recycled construction materials and converting items into usable construction materials for resale are charged to cost of sales as incurred. Advertising Costs for designing, producing and communicating advertising are expensed as incurred. Advertising expense for the three months ended June 30, 2021 and 2020 was $ 11,500 1,000 Advertising expense for the six months ended June 30, 2021 and 2020 was $ 12,000 8,500 Leases On January 1, 2019, the Company adopted ASU 2016-02 “ Leases” As part of the adoption the Company elected the practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to: 1. Not separate non-lease components from lease components and instead to account for each separate lease 2. Not to apply the recognition requirements in ASC 842 to short-term leases; and 3. Not record a right of use asset or right of use liability for leases with an asset or liability balance that Income Taxes Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss, credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. Management applies the criteria established in the FASB released Accounting Standards Update No. 2019-12, Income taxes (Topic 740) (the Update) to determine if any valuation allowances are needed each year. The Company recognizes a tax benefit for an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. There are no uncertain tax positions as of June 30, 2021 and December 31, 2020. Recent Accounting Pronouncements On December 18, 2019, the FASB released Accounting Standards Update No. 2019-12, Income taxes (Topic 740) (the Update). The Board issued this update as part of its initiative to reduce complexity in accounting standards. The Standard is effective for fiscal years beginning after December 15, 2020. The adoption did not have a material impact on the Company. In August 2020, the FASB issued Accounting Standards Update 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 on January 1, 2021. The adoption of ASU 2020-06 did not have an impact on the Company. On May 3, 2021, the FASB released Accounting Standards Update No. 2021-04, Compensation – Earning Per Share (Topic 260), Debt - Modifications and Extinguishments (subtopic 470-50), Compensation - Stock compensation (Topic 718), Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. FASB issued this update to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example warrants) that remain equity classified after modification or exchange. The Standard is effective for fiscal years beginning after December 15, 2021. The Company does not believe the adoption will have a material impact on the Company. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying value of such assets may not be fully recoverable. Impairment is present when the sum of undiscounted estimates future cash flow expected to result from use of the assets is less than carrying value. If impairment is present, the carrying value of the impaired asset is reduced to its fair value. Fair value is determined based on discounted cash flow or appraised values, depending on the nature of the assets. As of June 30, 2021, and December 31, 2020, there were no impairment losses recognized for long-lived assets. Offering Costs Associated with a Public Offering The Company complies with the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “ Expenses of Offering.” On January 15 and 20, 2021, the Company closed on a follow-on public offering and overallotment option, respectively, of common stock. During 2020, the Company incurred approximately $ 65,100 | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Our principal business activity involves acquiring raw land and developed lots for the purpose of building and selling single family and multi-family dwellings in the Puget Sound region of Washington State, California, and Texas. We utilize our heavy equipment resources to develop an inventory finished building lots and provide development infrastructure construction, on a contract basis, for other home builders. Single family construction and infrastructure construction contracts vary but are typically less than one year. On August 1, 2019, the Company changed its name from Harbor Custom Homes, Inc. to Harbor Custom Development, Inc. The Company became an effective filer with the SEC and started trading on the NASDAQ on August 31, 2020. Principles of Consolidation The consolidated financial statements include the following subsidiaries of Harbor Custom Development, Inc. as of the reporting period ending dates as follows (all entities are formed as Washington LLCs): SCHEDULE OF STATEMENT OF SUBSIDIARIES Names Dates of Formation Attributable Interest 2020 2019 Saylor View Estates, LLC March 30, 2014 51 % 51 % Harbor Excavation, LLC* July 3, 2017 N/A N/A Harbor Materials, LLC** July 5, 2018 100 % 100 % Belfair Apartments, LLC December 3, 2019 100 % 100 % * Harbor Excavation, LLC was voluntarily dissolved with the State of Washington as of June 14, 2019. ** Harbor Material, LLC was voluntarily dissolved with the State of Washington as of January 29, 2020. All intercompany transactions and balances have been eliminated in consolidation. As of December 31, 2020, and December 31, 2019, the aggregate non-controlling interest was $( 1,289,900 1,060,600 Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Company’s board of directors and stockholders approved a 1-for-2.22 reverse split of the Company’s common stock, which was effected on April 15, 2020. The reverse split combined each 2.22 shares of the Company’s outstanding common stock into one share of common stock. as if it had occurred at the beginning of the earliest period presented. All numbers in these financial statements are rounded to the nearest $100. Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Use of Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used. Stock-Based Compensation Effective as of November 19, 2018, the Company’s board of directors and stockholders approved and adopted the 2018 Incentive and Non-Statutory Stock Option Plan (the “2018 Plan”). The 2018 Plan allows the Administrator (as defined in the 2018 Plan), currently the board of directors, to determine the issuance of incentive stock options, non-qualified stock options and restricted stock to eligible employees and outside directors and consultants of the Company. The Company has reserved 675,676 The 2020 Restricted Stock Plan allows the Administrator (currently the Compensation Committee), to determine the issuance of restricted stock to eligible officers, directors, and key employees. We reserved 700,000 The Company accounts for stock-based compensation in accordance with ASC Topic 718, “ Compensation – Stock Compensation” The Company recognizes all forms of share-based payments, including stock option grants, warrants and restricted stock grants, at their fair value on the grant date, which are based on the estimated number of awards that are ultimately expected to vest. Options and warrants are valued using a Black-Scholes option pricing model. Grants of share-based payment awards issued to non-employees for services rendered and have been recorded at the fair value of the share-based payment. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation expense is reversed in the period related to the termination of service. Stock-based compensation expenses are included in selling, general and administrative expenses in the consolidated statement of operations. For the years ended December 31, 2020 and 2019 when computing fair value of share-based payments, the Company has considered the following variables: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS December 31, 2020 December 31, 2019 Risk-free interest rate 0.14% 1.46 % 1.56 1.84 % Exercise price $ 2.22 6.50 $ 0.40 Expected life of grants 2.86 6.00 5.0 6.53 Expected volatility of underlying stock 32.39% 51.94 % 31.75 32.89 % Dividends 0 % 0 % The expected option term is computed using the “simplified” method as permitted under the provisions of ASC 718-10-S99. The Company uses the simplified method to calculate expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The share price as of the grant date was determined by an independent third party 409(a) valuation until the Company’s stock became publicly traded, now the share price is the public trading price at the time of grant. Expected volatility is based on the historical stock price volatility of comparable companies’ common stock, as our stock does not have sufficient historical trading activity. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. Earnings (Loss) Per Share Earnings (loss) per share (“EPS”) is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to Section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) attributable to common stockholders per common share. SCHEDULE OF NET INCOME (LOSS) PER SHARE December 31, 2020 December 31, 2019 Numerator: Net income (loss) attributable to common stockholders $ (3,532,800 ) $ 235,600 Effect of dilutive securities: - - Diluted net income (loss) $ (3,532,800 ) $ 235,600 Denominator: Weighted average common shares outstanding - basic 4,214,418 3,513,517 Dilutive securities (a): Options - - Warrants - - Weighted average common shares outstanding and assumed conversion – diluted 4,214,418 3,513,517 Basic net income (loss) per common share $ (0.84 ) $ 0.07 Diluted net income (loss) per common share $ (0.84 ) $ 0.07 (a) - Anti-dilutive securities excluded: 241,609 139,742 Fair Value of Financial Instruments For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with a maturity of three months or less to be cash equivalents. There were no Accounts Receivable Accounts receivable are reported at the amount the Company expects to collect from outstanding balances. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. The Company determines if receivables are past due based on days outstanding, and amounts are written off when determined to be uncollectible by management. The allowance for doubtful accounts was $ 0 11,300 Property and Equipment and Depreciation Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method (after considering their respective estimated residual values) over the estimated useful lives: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Construction Equipment 10 Leasehold improvements The lesser of 10 years or the remaining life of the lease Furniture and Fixtures 5 Computers 3 Vehicles 10 Real Estate Assets Real estate assets are recorded at cost, except when real estate assets are acquired that meet the definition of a business combination in accordance with Financial Accounting Standards Board (“FASB”) ASC 805, “Business Combinations,” where acquired assets are recorded at fair value. Interest, property taxes, insurance, and other incremental costs (including salaries) directly related to a project are capitalized during the construction period of major facilities and land improvements. The capitalization period begins when activities to develop the parcel commence and ends when the asset constructed is completed. The capitalized costs are recorded as part of the asset to which they relate and are expensed when the underlying asset is sold. The Company capitalized interest from related party borrowings of $ 1,024,800 1,229,400 2,401,400 1,563,700 A property is classified as “held for sale” when all the following criteria for a plan of sale have been met: (1) Management, having the authority to approve the action, commits to a plan to sell the property: (2) The property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (3) An active program to locate a buyer and other actions required to complete the plan to sell, have been initiated; (4) The sale of the property is probable and is expected to be completed within one year of the contract date; (5) The property is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (6) Actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When all these criteria have been met, the property is classified as “held for sale.” In addition to the annual assessment of potential triggering events in accordance with ASC 360, the Company applies a fair value-based impairment test to the net book value assets on an annual basis and on an interim basis if certain events or circumstances indicate that an impairment loss may have occurred. As of December 31, 2020, and 2019, the Company did not have any projects that qualified for an impairment charge. Revenue and Cost Recognition Accounting Standards codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contract to provide goods or services to customers. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provision of ASC 606 includes a five-step process by which we determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which we expect to be entitled in exchange for those goods or services. ASC 606 requires us to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, performance obligations are satisfied. A detailed breakdown of the five-step process for the revenue recognition of Real Estate Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a home buyer to purchase a lot with a completed house. 2. Identify the performance obligations in the contract. Performance obligations of the company include delivering a develop lot with a completed house to the customer, which are required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract Each lot with a completed house is a separate performance obligation, for which the specific price in the contract is allocated. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have further performance obligation once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Construction Materials sold to or received from contractors is as follows: 1. Identify the contract with a customer. There are no signed contracts. Each transaction is verbally agreed to with the customer. 2. Identify the performance obligations in the contract. To deliver or receive materials from customers based on the verbal agreement reached. 3. Determine the transaction price. The Company has a set price list for receiving approved fill materials to recycle or provide customers with a combination of said materials. 4. Allocation of the transaction price to performance obligations in the contract. There is only one performance obligation, which is to pick up or deliver the materials. The entire transaction price is therefore allocated to the performance obligation. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The performance obligation is fulfilled, and revenue is recognized when the materials have been received or delivered by the company. Revenues for Real Estate and Construction Materials: Revenues from contracts with customers are summarized by product category as follows for the years ended December 31: SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS 2020 2019 Real Estate $ 49,814,500 $ 30,683,400 Construction Materials 582,500 270,100 Total Revenue $ 50,397,000 $ 30,953,500 Cost of Sales Land acquisition costs are allocated to each lot based on the size of the lot in relation to the size of the total project. Development cost and capitalized interest are allocated to lots sold based on the same criteria. Cost relating to the handling of recycled construction materials and converting items into usable construction materials for resale are charged to cost of sales as incurred. Advertising Costs for designing, producing, and communicating advertising are expensed as incurred. Advertising expense for the years ended December 31, 2020 and 2019 were $ 37,500 67,500 Leases In February 2016, the FASB issued ASU 2016-02 “ Leases” On January 1, 2019, the Company adopted ASC 842 using the modified retrospective approach and recognized a right of use (“ROU”) asset and related liability on the consolidated balance sheet in the amount of $ 474,200 As part of the adoption the Company elected the practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to: 1. Not separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease. 2. Not to apply the recognition requirements in ASC 842 to short-term leases. 3. Not record a right of use asset or right of use liability for leases with an asset or liability balance that would be considered immaterial. Refer to Note 12. Leases for additional disclosures required by ASC 842. Income Taxes Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss, credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. Management applies the criteria established in the Financial Accounting Standards Board (FASB) released Accounting Standards Update No. 2019-12, Income taxes (Topic 740) (the Update) to determine if any valuation allowances are needed each year. The Company recognizes a tax benefit for an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. There are no uncertain tax positions as of December 31, 2020 and December 31, 2019. Recent Accounting Pronouncements On February 25, 2016, the Financial Accounting Standards Board (FASB) released Accounting Standards Update No. 2016-02, Leases (Topic 842) (the Update). This ASU requires an entity to recognize a right-of-use asset (“ROU”) and lease liability for all leases with terms of more than 12 months. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for the Company on January 1, 2019, with early adoption permitted. The adoption has been reflected in the right of use asset and liability on the balance sheet. On December 18, 2019, the Financial Accounting Standards Board (FASB) released Accounting Standards Update No. 2019-12, Income taxes (Topic 740) (the Update). The Board issued this update as part of its initiative to reduce complexity in accounting standards. The Standard is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the effect of this standard. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying value of such assets may not be fully recoverable. Impairment is present when the sum of undiscounted estimates future cash flow expected to result from use of the assets is less than carrying value. If impairment is present, the carrying value of the impaired asset is reduced to its fair value. Fair value is determined based on discounted cash flow or appraised values, depending on the nature of the assets. As of December 31, 2020, and December 31, 2019, there were no impairment losses recognized for long-lived assets. Offering Costs Associated with a Public Offering The Company complies with the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “ Expenses of Offering.” 1,401,100 On January 15, 2021, we closed on a follow-on public offering and overallotment option, respectively, of our common stock. During 2020, we incurred approximately $ 65,100 |
CONCENTRATION, RISKS, AND UNCER
CONCENTRATION, RISKS, AND UNCERTAINTIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | ||
CONCENTRATION, RISKS, AND UNCERTAINTIES | 2. CONCENTRATION, RISKS, AND UNCERTAINTIES Cash Concentrations The Company maintains cash balances at various financial institutions. These balances are secured by the Federal Deposit Insurance Corporation. These balances may exceed the federal insurance limits. Uninsured cash balances were $ 12,157,000 2,146,000 Revenue Concentrations For the three months ended June 30, 2021 and 2020, revenue from Lennar Northwest, Inc. (“Lennar”) was $ 10,658,200 0 75 0 For the six months ended June 30, 2021 and 2020, revenue from Lennar was $ 17,658,200 0 63 0 COVID-19 In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“ COVID-19 The COVID-19 Pandemic has had the following effect on the Company’s business: 1. Construction not related to safety, spoliation, or critical infrastructure was halted by Washington State Governor Inslee (the “Governor”) on March 23, 2020. Some operations could continue based on the aforementioned exceptions to the shutdown order, but the Company did experience a significant operational slowdown. 2. Soundview Estates (a large Harbor Custom Development, Inc. site) continued selective activities that yielded rock byproduct, considered an essential material, needed for critical infrastructure projects for an Amazon distribution center and a local hospital. 3. On April 24, 2020, the Governor approved the restart of most residential housing projects, deeming them essential, as long as they adhered to certain safety measures. Under this order, most existing permitted residential homes or projects were considered essential. The order allowed the Company to resume near full construction activities on all permitted lots. 4. On May 1, 2020, the Governor established a four-phase plan for Washington businesses to follow. All Harbor Custom Development, Inc. development sites were in Phase 3 of the plan where construction was able to continue, and new construction was allowed, as long as the Company created a safety plan adhering to certain safety practices, which the Company had done. 5. As of June 30, 2021, Washington State reopened the state under the Washington Ready plan. All industry sectors previously covered by the Roadmap to Recovery or the Safe Start Plan (which included all Harbor Custom Development, Inc. operational activities) returned to usual capacity and operations. The Company has not, at this time, experienced any cancelled sales contracts. The Company has experienced some supply-chain issues with both cabinetry and appliances related to COVID-19. As of the date of this report, the Company’s projects are on-schedule and operations are not being materially impacted by the COVID-19 pandemic. While there could ultimately be a material impact on operations and liquidity of the Company, at the time of issuance of this report, the ultimate impact could not be determined. | 2. CONCENTRATION, RISKS, AND UNCERTAINTIES Cash Concentrations The Company maintains cash balances at various financial institutions. These balances are secured by the Federal Deposit Insurance Corporation. These balances may exceed the federal insurance limits. Uninsured cash balances were $ 2,146,000 177,600 Revenue Concentrations For the years ended December 31, 2020 and 2019 revenue from Lennar Northwest, Inc. was $ 12,538,000 7,015,000 25% 23% COVID-19 In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“ COVID-19 The COVID-19 Pandemic has had the following effect on the Company’s business: 5. Construction not related to safety, spoliation, or critical infrastructure was halted by Washington State Governor Inslee on March 23, 2020. Some operations could continue based on the aforementioned exceptions to the shutdown order, but the Company did experience a significant operational slowdown. 6. Soundview Estates (a large Harbor Custom Development, Inc. site) continued selective activities that yielded rock byproduct, considered an essential material, needed for critical infrastructure projects for an Amazon distribution center and a local hospital. 7. On April 24, 2020, the Governor approved the restart of most residential housing projects, deeming them essential, as long as they adhered to certain safety measures. Under this order, most existing permitted residential homes or projects were considered essential. The order allowed the Company to resume near full construction activities on all permitted lots. 8. On May 1, 2020, the Governor established a four-phase plan for Washington businesses to follow. All Harbor Custom Development, Inc. development sites are now in Phase 2 of the plan where construction can continue, and new construction is allowed, as long as the company creates a safety plan adhering to certain safety practices, which the company has done. While there could ultimately be a material impact on operations and liquidity of the Company, at the time of issuance of this report, the ultimate impact could not be determined. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
PROPERTY AND EQUIPMENT | 3. PROPERTY AND EQUIPMENT Property and equipment stated at cost, less accumulated depreciation and amortization, consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, 2021 December 31, 2020 Machinery and Equipment $ 9,562,500 $ 8,908,000 Vehicles 71,800 73,500 Furniture and Fixtures 147,600 136,300 Leasehold Improvements 7,000 7,000 Total Fixed Assets 9,788,900 9,124,800 Less Accumulated Depreciation (1,350,100 ) (948,800 ) Fixed Assets, Net $ 8,438,800 $ 8,176,000 Depreciation expense was $ 242,900 144,000 Depreciation expense was $ 483,100 285,900 | 3. PROPERTY AND EQUIPMENT Property and equipment stated at cost, less accumulated depreciation and amortization, consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2020 December 31, 2019 Machinery and Equipment $ 8,908,000 $ 5,654,100 Vehicles 73,500 83,600 Furniture and Fixtures 136,300 54,900 Leasehold Improvements 7,000 7,000 Total Fixed Assets 9,124,800 5,799,600 Less Accumulated Depreciation (948,800 ) (727,700 ) Fixed Assets, Net $ 8,176,000 $ 5,071,900 Depreciation expense was $ 619,800 427,600 |
REAL ESTATE
REAL ESTATE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Real Estate [Abstract] | ||
REAL ESTATE | 4. REAL ESTATE Real Estate consisted of the following components: SCHEDULE OF REAL ESTATE June 30, 2021 December 31, 2020 Land Held for Development $ 70,113,200 $ 9,532,800 Construction in Progress 15,104,600 9,042,700 Held for Sale - 1,794,800 Real estate $ 85,217,800 $ 20,370,300 | 4. REAL ESTATE Real Estate consisted of the following components: SCHEDULE OF REAL ESTATE December 31, 2020 December 31, 2019 Land Held for Development $ 9,532,800 $ 9,707,800 Construction in Progress 9,042,700 12,879,600 Held for Sale 1,794,800 2,239,300 Real estate $ 20,370,300 $ 24,826,700 |
EQUIPMENT LOANS
EQUIPMENT LOANS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
EQUIPMENT LOANS | 5. EQUIPMENT LOANS Consists of the following: SCHEDULE OF EQUIPMENT LOANS June 30, 2021 December 31, 2020 Various notes payable to banks and financial institutions with interest rates varying from 0.00 13.89 400 11,600 through 2026 $ 5,418,900 $ 5,595,500 Book value of collateralized equipment: $ 8,064,200 $ 6,475,600 Future equipment loan maturities are as follows: SCHEDULE OF FUTURE EQUIPMENT LOAN MATURITIES For the twelve months ended June 30: June 2021 2022 $ 1,657,200 2023 1,616,000 2024 1,452,800 2025 673,700 2026 19,200 Equipment Loans $ 5,418,900 | 5. EQUIPMENT LOANS Consists of the following: SCHEDULE OF EQUIPMENT LOANS December 31, 2020 December 31, 2019 Various notes payable to banks and financial institutions with interest rates varying from 0.00% 14.41% 400 11,600 through 2025 $ 5,595,500 $ 3,476,800 Book value of collateralized equipment: $ 6,475,600 $ 4,539,900 Future equipment loan maturities are as follows: SCHEDULE OF FUTURE EQUIPMENT LOAN MATURITIES For the years ended December 31: 2021 $ 1,495,300 2022 1,532,200 2023 1,345,300 2024 1,165,100 2025 57,600 Equipment Loans $ 5,595,500 |
CONSTRUCTION LOANS
CONSTRUCTION LOANS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
CONSTRUCTION LOANS | 6. CONSTRUCTION LOANS The Company has various construction loans with private individuals and finance companies. The loans are collateralized by specific construction projects. All loans have a one-year 5 39 27,523,700 10,092,500 85,217,800 20,370,300 | 6. CONSTRUCTION LOANS The Company has various construction loans with private individuals and finance companies. The loans are collateralized by specific construction projects. All loans have a one 8% 40% 10,092,500 9,647,700 20,370,300 24,826,700 |
NOTE PAYABLE D&O INSURANCE
NOTE PAYABLE D&O INSURANCE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
NOTE PAYABLE D&O INSURANCE | 7. NOTE PAYABLE D&O INSURANCE The Company purchased D&O insurance on August 28, 2020 for $ 1,531,900 306,400 1,225,500 ten months 4.74 3,000 0 10,300 0 741,200 | 7. NOTE PAYABLE D&O INSURANCE The Company purchased D&O insurance on August 28, 2020 for $ 1,531,900 306,400 1,225,500 10 4.74% 16,600 741,200 |
NOTE PAYABLE PPP
NOTE PAYABLE PPP | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
NOTE PAYABLE PPP | 8. NOTE PAYABLE PPP On April 11, 2020, the Company entered into a term note with Timberland Bank, with a principal amount of $ 582,800 1.00 Beginning in November 2020, 18 equal monthly payments of principal and interest were due with the final payment due in April 2022. The PPP Term Note may be accelerated upon the occurrence of an event of default. The PPP Term Note is unsecured and guaranteed by the United States Small Business Administration. The Company may apply for forgiveness of the PPP Term Note, with the amount which may be forgiven equal to the sum of payroll costs, covered rent and mortgage obligations, and covered utility payments incurred by the Company during the applicable period beginning upon receipt of PPP Term Note funds, calculated in accordance with the terms of the CARES Act. On November 9, 2020 and February 1, 2021, the SBA forgave $ 562,300 10,000 As of June 30, 2021, and December 31, 2020, the balance of the PPP Loan was $ 2,200 19,300 Future note payable loan maturities are as follows: SCHEDULE OF FUTURE NOTE PAYABLE LOAN MATURITIES For the twelve months ended June 30: June 2021 - 2022 $ 2,200 Note Payable $ 2,200 | 8. NOTE PAYABLE PPP On April 11, 2020, the Company entered into a term note with Timberland Bank, with a principal amount of $ 582,800 1.00% Beginning in November 2020, the Company will make 18 equal monthly payments of principal and interest with the final payment due in April 2022. The PPP Term Note may be accelerated upon the occurrence of an event of default. The PPP Term Note is unsecured and guaranteed by the United States Small Business Administration. The Company may apply for forgiveness of the PPP Term Note, with the amount which may be forgiven equal to the sum of payroll costs, covered rent and mortgage obligations, and covered utility payments incurred by the Company during the applicable period beginning upon receipt of PPP Term Note funds, calculated in accordance with the terms of the CARES Act. On November 9, 2020, the SBA forgave $ 562,300 As of December 31, 2020, the balance of this loan was $ 19,300 Future note payable loan maturities are as follows: For the years ended December 31: SCHEDULE OF FUTURE NOTE PAYABLE LOAN MATURITIES 2021 $ 14,600 2022 4,700 Note Payable $ 19,300 |
DEFINED CONTRIBUTION PLAN
DEFINED CONTRIBUTION PLAN | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||
DEFINED CONTRIBUTION PLAN | 9. DEFINED CONTRIBUTION PLAN Effective January 1, 2016, the Company established a 401(k) plan for qualifying employees; employee contributions are voluntary. Company contributions to the plan for the three months ended June 30, 2021 and 2020 were $ 23,200 0 49,600 0 | 9. DEFINED CONTRIBUTION PLAN Effective January 1, 2016, the Company established a 401(k) plan for qualifying employees; employee contributions are voluntarily. Company contributions to the plan for the years ended December 31, 2020 and 2019 were $ 70,900 29,800 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS COMMITMENTS AND CONTINGENCIES From time to time the Company is subject to compliance audits by federal, state and local authorities relating to a variety of regulations including wage and hour laws, taxes, and workers’ compensation. There are no significant or pending litigation or regulatory proceedings known at this time. On November 18, 2020, the Company entered into an agreement with a national public builder to sell 50 finished lots for $ 7,000,000 on March 31, 2021. In conjunction with this agreement the Company received $ 875,000 of nonrefundable earnest money on December 30, 2020 which is included in deferred revenue on the balance sheet. On September 17, 2020, the Company entered into a purchase and sale agreement for the acquisition of 9.6 1,440,000 On June 15, 2020, the Company entered into a purchase and sale agreement to acquire property for the construction of 30 townhomes located in East Bremerton, Washington for $ 2,040,000 On April 20, 2021, the Company entered into a purchase and sale agreement to acquire 106 lots in Horseshoe Bay, Texas for $ 16,900,000 On April 25, 2021, the Company entered into a purchase and sale agreement to acquire 31 2,700 4,750,000 On May 6, 2021, the Company entered into a purchase and sale agreement to acquire 53 4,700,000 On June 7, 2021 the Company entered into a purchase and sale agreement to acquire a 177-unit condominium site in Olympia, Washington for $ 4,425,000 On June 22, 2021 the Company entered into a purchase and sale agreement to acquire a 112-unit condominium site in Burien, Washington for $ 2,600,000 | 10. COMMITMENTS AND CONTINGENCIES From time to time the Company is subject to compliance audits by federal, state, and local authorities relating to a variety of regulations including wage and hour laws, taxes, and workers’ compensation. There are no significant or pending litigation or regulatory proceedings known at this time. On November 18, 2020, the Company entered into an agreement with a national public builder to sell 50 finished lots for $ 7,000,000 875,000 On November 18, 2020, the Company entered into a purchase and sales agreement to acquire 36 lots located in the Auburn, California for $ 4,900,000 On September 17, 2020, the Company entered into a purchase and sales agreement for the acquisition of 9.6 1,440,000 On August 28, 2020, the Company entered into a purchase and sale agreement to acquire property currently under development for the construction of 36 townhomes located in Bremerton, Washington for $ 1,500,000 On June 15 ,2020, the Company entered into a purchase and sales agreement to acquire property for the construction of 30 townhomes located in East Bremerton, Washington for $ 2,040,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS Notes Payable The Company entered into construction loans with Sound Equity, LLC of which Robb Kenyon, a director and minority shareholder, is a partner. These loans were originated between April 2019 and January 2021; all of the loans have a one-year 8.49 12.00 465,200 0 552,800 0 466,000 202,500 1,141,800 293,400 1,431,100 621,300 1,431,600 466,600 12,250,200 6,489,900 The Company entered into a construction loan with Curb Funding, LLC of which Robb Kenyon a director and minority shareholder, is 100% owner. The loan originated on August 13, 2020. The loan has a one-year 12 0 3,500 0 1,100 0 51,800 2,800 0 As discussed in Note 15 - Subsequent Events, Robb Kenyon resigned as a director of the Company on July 8, 2021. On April 19, 2019, the Company entered into a construction loan with Olympic Views, LLC of which the Company’s Chief Executive Officer and President, previously owned a 50 442,000 12 April 19, 2020 0 0 0 33,200 55,000 6.00 82,826 Due to Related Party The Company utilizes a quarry to process waste materials from the completion of raw land into sellable/buildable lots. The quarry is located on land owned by SGRE, LLC which is 100 25 0 0 26,800 0 41,900 78,300 Richard Schmidtke, a Company director, provided accounting services in 2021 and 2020 to the Company. On June 30, 2021 and December 31, 2020, the fees payable to Mr. Schmidtke were $ 0 500 500 12,000 500 34,300 Land Purchase from a Related Party On September 2, 2020, the Company purchased 99 unfinished lots for $ 3,430,000 50 | 11. RELATED PARTY TRANSACTIONS Notes Payable The Company entered into construction loans with Sound Capital Loans Inc. of which a director and minority shareholder is a partner. These loans were originated between April 2019 and October 2020; all of the loans have a one 7.99% 12.00% 418,300 771,700 202,500 402,300 726,500 705,700 466,600 451,500 6,438,100 14,935,000 The Company entered into a construction loan with Curb Funding, LLC, of which a director and minority shareholder is 100% owner. The loan originated August 13, 2020. The loan has a one 12% 3,500 0 1,100 0 51,800 0 3,000 0 On April 19, 2019, the Company entered into a construction loan with Olympic Views, LLC of which the Company’s President, owned a 50% 442,000 12% April 19, 2020 0 442,000 17,400 37,600 55,000 6.00 82,826 Due to Related Party The Company has a quarry which it uses to process waste materials from the completion of raw land into sellable/buildable lots. The quarry is located on land owned by SGRE, LLC which is 100% 25% 0 0 136,500 0 0 8,100 Due to Related Party Richard Schmidtke, a Company director, provided accounting services in 2020 and 2019 to the Company. On December 31, 2020 and December 31, 2019, the fees payable to Mr. Schmidtke were $ 500 13,500 51,000 26,300 Land Purchase from a Related Party On September 2, 2020, the Company purchased 99 unfinished lots for $ 3,430,000 Land Distribution to Company’s President In 2019, the Company transferred land and the related mining bond with a book value of $ 495,500 0 495,500 |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
STOCKHOLDERS’ EQUITY (DEFICIT) | 12. STOCKHOLDERS’ EQUITY STOCKHOLDERS’ EQUITY (DEFICIT) Common Stock The Company is authorized to issue 50,000,000 no 14,898,594 Each share of common stock has one vote per share for all purposes. Common stock does not provide any preemptive, subscription or conversion rights and there are no redemption or sinking fund provisions or rights. Common stockholders are not entitled to cumulative voting for purposes of electing members to the Board of Directors. Preferred Stock At June 30, 2021, the Company is authorized to issue 10,000,000 no 1,260,555 8 25.00 25.00 Conversion at Option of Holder 4.50 5.556 Dividends Preferred Stock 8 140,100 Common Stock. Public Offering and Conversion of Debt The registration statement for the Company’s initial public offering (the “Initial Public Offering”) became effective on August 28, 2020. On September 1, 2020, the Company closed on the Initial Public Offering of 2,031,705 6.00 265,005 12,190,200 10,789,000 In addition, upon closing of the Initial Public Offering the Company issued, to the underwriters, warrants to purchase an aggregate of 88,335 7.50 four years 167,400 Also, upon closing of the Initial Public Offering, the Company issued to Olympic Views, LLC (“Olympic”), 82,826 442,000 55,000 6.00 2021 Common Stock Offering On January 15 and 20, 2021, the Company closed on an offering (the “Follow-On Offering”) of 9,200,000 3.00 1,200,000 27,600,000 25,101,000 In addition, upon closing of the Follow-On Offering the Company issued to the underwriters, warrants to purchase an aggregate of 400,000 3.75 five years 453,800 Preferred Stock Offering On June 11, 2021, the Company closed an offering (the “Preferred Stock Offering”) for 1,200,000 4,140,000 5.00 540,000 30,005,400 60,555 1,406,200 28,661,000 In addition, upon closing of the Preferred Stock Offering, the Company issued to the underwriters two warrants, including (i) warrants to purchase 12,000 36,000 5.00 The warrants issued to investors in this offering have an exercise price of $ 5.00 five years 3,701,600 (A) Options The following is a summary of the Company’s option activity: SCHEDULE OF STOCK OPTIONS ACTIVITY Options Weighted Average Exercise Price Outstanding – December 31, 2020 442,172 $ 2.53 Exercisable – December 31, 2020 219,085 $ 1.31 Granted 25,000 $ 3.39 Exercised (45,046 ) $ 0.40 Forfeited/Cancelled - $ - Outstanding – June 30, 2021 422,126 $ 2.80 Exercisable – June 30, 2021 306,117 $ 2.54 SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Number Exercisable Weighted Average Exercise Price $ 0.40 6.50 422,126 6.07 $ 2.80 306,117 $ 2.54 During the six months ended June 30, 2021, the Company issued 25,000 3.36 3.41 10 years two years 29,600 Stock-Based Compensation. During the six months ended June 30, 2021, the Company had 45,046 0.40 18,000 The Company recognized share-based compensation net of forfeitures related to options of $ 77,300 1,100 The Company recognized share-based compensation net of forfeitures related to options of $ 153,900 1,100 As of June 30, 2021, unrecognized share-based compensation was $ 138,400 The intrinsic value for outstanding and exercisable options as of June 30, 2021 was $ 552,200 460,600 (B) Warrants The following is a summary of the Company’s Common Stock Warrant activity: SCHEDULE OF WARRANTS ACTIVITY Warrants Weighted Average Exercise Price Outstanding – December 31, 2020 110,859 $ 6.06 Exercisable – December 31, 2020 22,524 $ 0.40 Granted 4,757,665 $ 4.89 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – June 30, 2021 4,868,524 $ 4.92 Exercisable – June 30, 2021 3,804,189 $ 4.97 SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Number Exercisable Weighted Average Exercise Price $ 0.40 7.50 4,868,524 4.92 $ 4.92 3,804,189 $ 4.97 The intrinsic value for outstanding and exercisable warrants as of June 30, 2021 was $ 64,000 64,000 The following is a summary of the Company’s Preferred Stock Warrant activity: SCHEDULE OF WARRANTS ACTIVITY Warrants Weighted Average Exercise Price Outstanding – December 31, 2020 - $ - Exercisable – December 31, 2020 - $ - Granted 12,000 $ 24.97 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – June 30, 2021 12,000 $ 24.97 Exercisable – June 30, 2021 - $ - SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Exercise Number Outstanding Weighted Weighted Number Exercisable Weighted $ 24.97 12,000 4.95 $ 24.97 12,000 $ 24.97 The intrinsic value for outstanding and exercisable warrants as of June 30, 2021 was $ 0 0 (C) Restricted Stock Unit (“RSU”) Plan The following is a summary of the Company’s RSU activity: SCHEDULE OF RESTRICTED STOCK UNIT ACTIVITY RSU Weighted Average Exercise Price Outstanding – December 31, 2020 34,000 $ 4.53 Exercisable – December 31, 2020 8,500 $ 4.53 Granted - $ - Exercised - $ - Forfeited/Cancelled - $ - Outstanding – June 30, 20201 34,000 $ 4.53 Exercisable – June 30, 2021 25,500 $ 4.53 The Company periodically grants restricted stock awards to the board of directors and certain employees pursuant to the 2020 RSU plan. These typically are awarded by the board of directors at one time and from time to time, to vest in four equal installments on the last day of a fiscal quarter. The Company recognized $ 38,500 0 77,000 0 38,500 | 14. STOCKHOLDERS’ EQUITY (DEFICIT) Public Offering and Conversion of Debt The registration statement for the Company’s initial public offering became effective on August 28, 2020. On September 1, 2020, the Company closed on the initial public offering of 2,031,705 6.00 265,005 12,190,200 10,789,000 In addition, upon closing of the initial public offering, the Company issued to the underwriters warrants to purchase an aggregate of 88,335 7.50 four 167,400 Also, upon closing of the initial public offering, the Company issued to Olympic Views, LLC (“Olympic”), 82,826 442,000 55,000 6.00 Common Stock (A) Options The following is a summary of the Company’s option activity: SCHEDULE OF STOCK OPTIONS ACTIVITY Options Weighted Average Exercise Price Outstanding – December 31, 2018 157,664 $ 0.42 Exercisable – December 31, 2018 - $ - Granted 106,762 $ 0.40 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – December 31, 2019 264,426 $ 0.41 Exercisable – December 31, 2019 117,218 $ 0.42 Granted 213,784 $ 4.79 Exercised - $ - Forfeited/Cancelled (36,038 ) $ 0.40 Outstanding – December 31, 2020 442,172 $ 2.53 Exercisable – December 31, 2020 219,085 $ 1.31 SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average $ 0.40 6.50 442,172 6.00 $ 2.53 219,085 $ 1.31 During the year ended December 31, 2019, the Company issued 106,762 0.40 10 3 9,000 Stock-Based Compensation 5,500 During the year ended December 31, 2020, the Company issued 213,784 2.22 6.50 5 10 1 2 343,700 Stock-Based Compensation 71,900 264,600 The intrinsic value for outstanding and exercisable options as of December 31, 2020 was $ 973,800 706,200 0 0 (B) Warrants The following is a summary of the Company’s warrant activity: SCHEDULE OF WARRANTS ACTIVITY Warrants Weighted Average Exercise Price Outstanding – December 31, 2018 - $ - Exercisable – December 31, 2018 - $ - Granted 22,524 $ 0.40 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – December 31, 2019 22,524 $ 0.40 Exercisable – December 31, 2019 22,524 $ 0.40 Granted 88,335 $ 7.50 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – December 31, 2020 110,859 $ 6.06 Exercisable – December 31, 2020 22,524 $ 0.40 SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average $ 0.40 7.50 110,859 5.51 $ 6.06 22,524 $ 0.40 On December 31, 2019, the total intrinsic value of warrants outstanding and exercisable was $ 0 22,524 0.40 10 1,600 Stock-Based Compensation During the year ended December 31, 2020, the Company issued 88,335 7.50 5 1 167,400 Stock-Based Compensation The intrinsic value for outstanding and exercisable warrants as of December 31, 2020 was $ 89,200 89,200 (C) Restricted Stock Unit (“RSU”) Plan The following is a summary of the Company’s RSU activity: SCHEDULE OF RESTRICTED STOCK UNIT ACTIVITY RSU Weighted Average Exercise Price Outstanding – December 31, 2019 - $ - Exercisable – December 31, 2019 - $ - Granted 34,000 $ 4.53 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – December 31, 2020 34,000 $ 4.53 Exercisable – December 31, 2020 8,500 $ 4.53 The Company periodically grants restricted stock awards to the board of directors and certain employees pursuant to the 2020 RSU plan. These typically are awarded on the first day of a fiscal quarter and fully vest on the last day of the quarter. The Company recognized $ 43,800 115,500 |
SEGMENTS
SEGMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENTS | 13. SEGMENTS The Company’s business is organized into four material reportable segments which aggregate 99% of revenue: 1) Homes revenue 2) Completed lots revenue 3) Entitled land revenue 4) Fee build revenue The reporting segments follow the same accounting policies used in the preparation of the Company’s consolidated financial statements. The following represents selected information for the Company’s reportable segment for the three months ended June 30, 2021 and 2020 and the six months ended June 30, 2021 and 2020. Immaterial construction materials revenues and costs are included in the homes segment. SCHEDULE OF COMPANY’S REPORTABLE SEGMENT For the Three Months ended For the Six Months ended June 30, June 30, 2021 2020 2021 2020 Revenue by segment Homes $ 3,474,200 $ 8,329,800 $ 10,348,400 $ 18,270,800 Completed lots - - 7,000,000 - Entitled land 9,310,000 - 9,310,000 - Fee Build 1,348,200 - 1,348,200 - $ 14,132,400 $ 8,329,800 $ 28,006,600 $ 18,270,800 Cost of goods sold by segment Homes $ 2,681,500 $ 7,436,000 $ 8,742,800 $ 17,264,200 Completed lots - - 7,046,400 - Entitled land 6,934,900 - 7,094,200 - Fee Build 1,188,700 - 1,188,700 - $ 10,805,100 $ 7,436,000 $ 24,072,100 $ 17,264,200 Gross profit (loss) by segment Homes $ 792,700 $ 893,800 $ 1,605,600 $ 1,006,600 Completed lots - - (46,400 ) - Entitled land 2,375,100 - 2,215,800 - Fee Build 159,500 - 159,500 - $ 3,327,300 $ 893,800 $ 3,934,500 $ 1,006,600 |
UNCOMPLETED CONTRACTS
UNCOMPLETED CONTRACTS | 6 Months Ended |
Jun. 30, 2021 | |
Contractors [Abstract] | |
UNCOMPLETED CONTRACTS | 14. UNCOMPLETED CONTRACTS Costs, estimated earnings and billings on uncompleted contracts are summarized as follows at June 30, 2021 and December 31, 2020: SUMMARY OF COST, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS June 30, 2021 December 31, 2020 Costs incurred on uncompleted contracts $ 1,188,700 $ - Estimated earnings 292,800 - Costs and estimated earnings on uncompleted contracts 1,481,500 - Billings to date 1,287,000 - Costs and estimated earnings in excess of billings on uncompleted contracts 194,500 - Costs and earnings in excess of billings on completed contracts - - Total $ 194,500 $ - Costs in excess of billings $ 194,500 $ - Billings in excess of cost - - Total $ 194,500 $ - The contract asset of $ 1,481,500 1,287,000 194,500 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS The registration statement for the Company’s follow-on public offering was effective on January 12, 2021. On January 15 and 20, 2021, the Company closed on the public offering of 9,200,000 3.00 1,200,000 27,600,000 400,000 25,256,000 On March 16, 2021, a former employee of the Company exercised 45,046 0.40 18,000 On April 20, 2021, the Company entered into a purchase and sale agreement to acquire 106 lots in Horseshoe Bay, Texas for $ 16,900,000 On April 25, 2021, the Company entered into a purchase and sale agreement to acquire 31 2,700 4,750,000 On May 6, 2021, the Company entered into a purchase and sale agreement to acquire ten lots in Horseshoe Bay, Texas for $ 2,005,200 On May 6, 2021, the Company entered into a purchase and sale agreement to acquire 53 4,700,000 On June 7, 2021 the Company entered into a purchase and sale agreement to acquire a 177-unit condominium site in Olympia, Washington for $ 4,425,000 On July 8 , On July 9, 2021, the Company entered into a purchase and sale agreement to acquire one lot in Horseshoe Bay, Texas for $ 60,000 On July 12, 2021, the Company entered into a purchase and sale agreement to acquire 208-unit condominium site in Sacramento, California for $ 5,544,000 On July 26, 2021, the Company entered into a contract with Lennar to sell 144 entitled lots in Belfair Washington for $ 10,440,000 On July 29, 2021, the Company entered into a non-binding credit facilities agreement with US Capital Global in the amount of $ 158,400,000 | 15. SUBSEQUENT EVENTS The registration statement for the Company’s follow-on public offering was effective on January 12, 2021. On January 15 and 20, 2021, the Company closed on the public offering of 9,200,000 3.00 1,200,000 27,600,000 400,000 25,256,000 On January 21, 2021, the Company closed on an acquisition of three lots in Austin, Texas for $ 755,000 On January 29, 2021, the Company closed on an acquisition of 36 lots in Auburn, California for $ 4,900,000 4,498,300 On February 16, 2021, the Company entered into a sales agreement with a national public builder to sell 99 lots for $ 7,920,000 8,910,000 On February 22, 2021, the Company acquired nine lots in Driftwood, Texas for $ 1,584,350 On February 25, 2021, the Company entered into a sales agreement to acquire 55 lots in Loomis, California for $ 6,850,000 On March 3, 2021, the Company hired a SOX Compliance Manager. On March 5, 2021, the Company closed on an acquisition of 145 lots located in Belfair, Washington for $ 3,915,000 On March 8, 2021, the Company entered into a purchase and sale agreement to acquire 30 lots in Horseshoe Bay, Texas for $ 2,500,000 On March 8, 2021, the Company entered into a purchase and sale agreement to acquire four lots in Loomis, California for $ 1,100,000 On March 8, 2021, the Company entered into a purchase and sale agreement to acquire the Company’s corporate headquarters office building located in Gig Harbor, Washington for $ 3,050,000 On March 9, 2021, the Company entered into a purchase and sale agreement to acquire four lots in Spicewood, Texas for $ 915,000 On March 16, 2021, a former employee of the Company exercised 45,046 0.40 18,000 On March 18, 2021, the Company closed on an agreement to acquire 22 lots in Rocklin, California for $ 3,944,050 On March 23, 2021, the Company entered into a purchase and sale agreement to acquire an 80-unit condominium site in Tacoma, Washington for $ 2,000,000 On March 30, 2021, the Company entered into a purchase and sale agreement to sell 144 lots located in Belfair, Washington for $ 8,640,000 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
LEASES | 12. LEASES The Company determines if an arrangement contains a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company’s leases consist of leaseholds on office space, machinery, and equipment. The Company utilized a portfolio approach in determining the discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category of the underlying asset and the Company’s estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. The Company also considered its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating the incremental borrowing rates. The lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. These operating leases contain renewal options for periods ranging from three to five years that expire at various dates with no residual value guarantees. Future obligations relating to the exercise of renewal options is included in the measurement if, based on the judgment of management, the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of the renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option is not exercised. Management reasonably plans to exercise all options, and as such, all renewal options are included in the measurement of the right-of-use assets and operating lease liabilities. Leases with a term of 12 The Company recognizes variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred. The components of lease expense were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE Year Ended Year Ended December 31, 2020 December 31, 2019 Finance leases: Depreciation of assets $ 88,000 $ 98,300 Interest on lease liabilities 38,000 52,600 Operating lease expense 328,300 200,800 Total net lease cost $ 454,300 $ 351,700 Supplemental balance sheet information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES December 31, 2020 December 31, 2019 Operating leases: Operating lease ROU assets $ 873,800 $ 1,132,700 Total ROU Liabilities $ 841,700 $ 1,115,500 Finance leases: Property and equipment, at cost $ 1,411,100 $ 983,400 Accumulated depreciation 140,400 250,500 Property and equipment, net $ 1,270,700 $ 732,900 Total Finance lease liabilities $ 999,400 $ 520,700 Supplemental cash flow and other information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES Year Ended Year Ended December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (273,800 ) $ (170,700 ) Financing cash flows from finance leases (564,400 ) (185,100 ) Assets obtained in exchange for lease liabilities: Operating leases $ 0 $ 1,286,200 Finance leases 1,043,100 0 Weighted average remaining lease term (in years): Operating leases 3.2 3.8 Finance leases 3.1 2.0 Weighted average discount rate: Operating leases 9.9 % 7.0 % Finance leases 5.2 % 7.98 % The minimum lease payments under the terms of the leases are as follows: SCHEDULE OF MINIMUM LEASE PAYMENTS UNDER THE TERMS OF THE LEASES For the years ended December 31, 2020: Operating Leases Finance Leases Total 2021 $ 320,800 $ 397,100 $ 717,900 2022 303,000 269,400 572,400 2023 196,800 264,500 461,300 2024 113,900 161,300 276,200 2025 - - - Total lease payments $ 934,500 $ 1,093,300 $ 2,027,800 Less amount of discount/interest (92,800 ) (93,900 ) (186,700 ) $ 841,700 $ 999,400 $ 1,841,100 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 13. INCOME TAX The components of net deferred tax assets and liabilities at December 31, 2020 and 2019 are set forth below: SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS AND LIABILITIES December 31, 2020 December 31, 2019 Deferred tax assets: Federal NOL Carryforward $ 1,794,200 $ 2,316,300 UNICAP 193,000 777,800 Lease Liability 176,700 - Stock Based compensation 9,200 - Investments 57,100 - Total assets 2,230,200 3,094,100 Deferred tax liabilities: Property and equipment 1,705,400 2,922,500 Right of use assets 183,500 - Total liabilities 1,888,900 2,922,500 Subtotal deferred tax assets (liabilities) 341,300 171,600 Valuation Allowance (341,300 ) - Net deferred tax assets (liabilities) $ - $ 171,600 In accordance with GAAP, management assesses whether it is more-likely-than-not that some portion or all of the deferred tax assets would not be realized, and a valuation allowance is warranted. At December 31, 2020, management determined that it was more-likely-than-not that a valuation amount should be applied against the Company’s net deferred tax assets. On December 31, 2019, management determined that it was more-likely-than-not that the Company’s deferred tax assets would be realized. Accordingly, on December 31, 2019, no valuation allowance was recorded against the Company’s federal net deferred tax assets. The change in valuation allowance in the current year was an increase of $ 341,300 The Company has approximately $ 8.5 These NOLs will not expire but are limited to 80% of taxable income, due to the CARES Act. The components of income tax expense and the effective tax rates for the years ended December 31, 2020 and 2019 are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE AND THE EFFECTIVE TAX RATES Years Ended December 31, 2020 2019 Current: Federal $ - $ - Total Current - - Deferred: Federal (224,500 ) (634,600 ) Total Deferred (224,500 ) (634,600 ) Valuation Allowance 341,300 - Total Income Tax (Benefit) Expense $ 116,800 $ (634,600 ) The expected tax rate differs from the U.S. Federal statutory rate as follows: SCHEDULE OF EXPECTED INCOME TAX RATE 2020 2019 US Federal statutory rate 21 % 21 % Adjustment for Deferred Tax (16.3 %) 124 % PPP Loan forgiveness 3.2 % 0 % Change in Federal Valuation Allowance (9.4 %) 0 % Non-controlling interest (1.3 %) 0 % Other (0.4 %) 0 % Effective Tax Rate (3.2 %) 145 % On December 31, 2020, the Company has not recorded any uncertain tax positions for any tax year and treats accrued interest and penalties on income tax liabilities as income tax expense. The Company files an income tax return in the U.S. and is subject to examination by the IRS for the tax years 2018 and 2019. |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Nature of Operations | Nature of Operations The Company’s principal business activity involves acquiring raw land and developed lots for the purpose of building and selling single family and multi-family dwellings in Washington, California, Texas and Florida. It utilizes its heavy equipment resources to develop an inventory of finished lots and provide development infrastructure construction, on a contract basis, for other home builders. Single family construction and infrastructure construction contracts vary but are typically less than one year. On August 1, 2019, the Company changed its name from Harbor Custom Homes, Inc. to Harbor Custom Development, Inc. The Company became an effective filer with the Securities and Exchange Commission SEC and started trading on The Nasdaq Stock Market LLC (“Nasdaq”) on August 28, 2020. | Nature of Operations Our principal business activity involves acquiring raw land and developed lots for the purpose of building and selling single family and multi-family dwellings in the Puget Sound region of Washington State, California, and Texas. We utilize our heavy equipment resources to develop an inventory finished building lots and provide development infrastructure construction, on a contract basis, for other home builders. Single family construction and infrastructure construction contracts vary but are typically less than one year. On August 1, 2019, the Company changed its name from Harbor Custom Homes, Inc. to Harbor Custom Development, Inc. The Company became an effective filer with the SEC and started trading on the NASDAQ on August 31, 2020. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the following subsidiaries of Harbor Custom Development, Inc. as of the reporting period ending dates as follows (all entities are formed as Washington LLCs): SCHEDULE OF STATEMENT OF SUBSIDIARIES Names Dates of Formation Attributable Interest June 30, December 31, 2021 2020 Saylor View Estates, LLC March 30, 2014 51 % 51 % Harbor Materials, LLC* July 5, 2018 N/A 100 % Belfair Apartments, LLC December 3, 2019 100 % 100 % Pacific Ridge CMS, LLC May 24, 2021 100 % N/A Tanglewilde, LLC June 25, 2021 100 % N/A * Harbor Materials, LLC was voluntarily dissolved with the State of Washington as of January 29, 2021. All intercompany transactions and balances have been eliminated in consolidation. As of June 30, 2021 and December 31, 2020, the aggregate non-controlling interest was $ (1,291,600) (1,289,900) | Principles of Consolidation The consolidated financial statements include the following subsidiaries of Harbor Custom Development, Inc. as of the reporting period ending dates as follows (all entities are formed as Washington LLCs): SCHEDULE OF STATEMENT OF SUBSIDIARIES Names Dates of Formation Attributable Interest 2020 2019 Saylor View Estates, LLC March 30, 2014 51 % 51 % Harbor Excavation, LLC* July 3, 2017 N/A N/A Harbor Materials, LLC** July 5, 2018 100 % 100 % Belfair Apartments, LLC December 3, 2019 100 % 100 % * Harbor Excavation, LLC was voluntarily dissolved with the State of Washington as of June 14, 2019. ** Harbor Material, LLC was voluntarily dissolved with the State of Washington as of January 29, 2020. All intercompany transactions and balances have been eliminated in consolidation. As of December 31, 2020, and December 31, 2019, the aggregate non-controlling interest was $( 1,289,900 1,060,600 |
Basis of Presentation | Basis of Presentation The unaudited financial information furnished herein reflects all adjustments, consisting solely of normal recurring items, which in the opinion of management are necessary to fairly state the financial position of the Company and the results of its operations for the periods presented. This report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the (“SEC”) on March 31, 2021. The Company assumes that the users of the interim financial information herein have read or have access to the audited financial statements for the preceding fiscal year and the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The condensed consolidated balance sheet at December 31, 2020 was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The results of operations for the interim periods presented are not necessarily indicative of results for the year ending December 31, 2021. The Company’s Board of Directors and stockholders approved a 1-for-2.22 reverse split of the Company’s common stock, which was effected on April 15, 2020. The reverse split combined each 2.22 shares of the Company’s outstanding common stock into one share of common stock. as if it had occurred at the beginning of the earliest period presented. All numbers in these financial statements are rounded to the nearest $100. | Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Company’s board of directors and stockholders approved a 1-for-2.22 reverse split of the Company’s common stock, which was effected on April 15, 2020. The reverse split combined each 2.22 shares of the Company’s outstanding common stock into one share of common stock. as if it had occurred at the beginning of the earliest period presented. All numbers in these financial statements are rounded to the nearest $100. |
Use of Estimates | Use of Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used. | Use of Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used. |
Stock-Based Compensation | Stock-Based Compensation Effective as of November 19, 2018, the Company’s Board of Directors and stockholders approved and adopted the 2018 Incentive and Non-Statutory Stock Option Plan (the “2018 Plan”). The 2018 Plan allows the Administrator (as defined in the 2018 Plan), currently the Board of Directors, to determine the issuance of incentive stock options and non-qualified stock options to eligible employees and outside directors and consultants of the Company. The Company reserved 675,676 Effective as of December 3, 2020, the Company’s Board of Directors and stockholders approved and adopted the 2020 Restricted Stock Plan (the “2020 Plan”). The 2020 Plan allows the Administrator (currently the Compensation Committee) to determine the issuance of restricted stock to eligible officers, directors, and key employees. The Company reserved 700,000 The Company accounts for stock-based compensation in accordance with ASC Topic 718, “ Compensation – Stock Compensation” The Company recognizes all forms of share-based payments, including stock option grants, warrants and restricted stock grants, at their fair value on the grant date, which is based on the estimated number of awards that are ultimately expected to vest. Options and warrants are valued using a Black-Scholes option pricing model. Grants of share-based payment awards issued to non-employees for services rendered have been recorded at the fair value of the share-based payment. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation expense is reversed in the period related to the termination of service. Stock-based compensation expenses are included in selling, general and administrative expenses in the consolidated statement of operations. For the six months ended June 30, 2021 and 2020 when computing fair value of share-based payments, the Company has considered the following variables: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS June 30, 2021 June 30, 2020 Risk-free interest rate 0.23 0.84 1.46 % Exercise price $ 3.36 5.00 $ 2.22 Expected life of grants 2.50 6 5.64 Expected volatility of underlying stock 42.97 56.13 32.39 % Dividends 0 0 The expected term is computed using the “simplified” method as permitted under the provisions of ASC 718-10-S99. The Company uses the simplified method to calculate the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The share price as of the grant date was determined by an independent third party 409(a) valuation until the Company’s stock became publicly traded. Now the share price is the public trading price at the time of grant. Expected volatility is based on the historical stock price volatility of comparable companies’ common stock, as the stock does not have sufficient historical trading activity. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. | Stock-Based Compensation Effective as of November 19, 2018, the Company’s board of directors and stockholders approved and adopted the 2018 Incentive and Non-Statutory Stock Option Plan (the “2018 Plan”). The 2018 Plan allows the Administrator (as defined in the 2018 Plan), currently the board of directors, to determine the issuance of incentive stock options, non-qualified stock options and restricted stock to eligible employees and outside directors and consultants of the Company. The Company has reserved 675,676 The 2020 Restricted Stock Plan allows the Administrator (currently the Compensation Committee), to determine the issuance of restricted stock to eligible officers, directors, and key employees. We reserved 700,000 The Company accounts for stock-based compensation in accordance with ASC Topic 718, “ Compensation – Stock Compensation” The Company recognizes all forms of share-based payments, including stock option grants, warrants and restricted stock grants, at their fair value on the grant date, which are based on the estimated number of awards that are ultimately expected to vest. Options and warrants are valued using a Black-Scholes option pricing model. Grants of share-based payment awards issued to non-employees for services rendered and have been recorded at the fair value of the share-based payment. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation expense is reversed in the period related to the termination of service. Stock-based compensation expenses are included in selling, general and administrative expenses in the consolidated statement of operations. For the years ended December 31, 2020 and 2019 when computing fair value of share-based payments, the Company has considered the following variables: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS December 31, 2020 December 31, 2019 Risk-free interest rate 0.14% 1.46 % 1.56 1.84 % Exercise price $ 2.22 6.50 $ 0.40 Expected life of grants 2.86 6.00 5.0 6.53 Expected volatility of underlying stock 32.39% 51.94 % 31.75 32.89 % Dividends 0 % 0 % The expected option term is computed using the “simplified” method as permitted under the provisions of ASC 718-10-S99. The Company uses the simplified method to calculate expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The share price as of the grant date was determined by an independent third party 409(a) valuation until the Company’s stock became publicly traded, now the share price is the public trading price at the time of grant. Expected volatility is based on the historical stock price volatility of comparable companies’ common stock, as our stock does not have sufficient historical trading activity. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (Loss) per share (“EPS”) is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to Section 260-10-45 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss attributable to common stockholders per common share. SCHEDULE OF NET INCOME (LOSS) PER SHARE 1 2 3 4 For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net income (loss) attributable to common stockholders $ 931,600 $ (431,100 ) (618,200 ) $ (1,183,100 ) Effect of dilutive securities: - - - - Diluted income (net) loss $ 931,600 $ (431,100 ) (618,200 ) $ (1,183,100 ) Denominator: Weighted average common shares outstanding - basic 14,890,094 3,513,517 14,071,373 3,513,517 Dilutive securities (a): Options 19,778 - - - Warrants 142,653 - - - Weighted average common shares outstanding and assumed 15,052,525 3,513,517 14,071,373 3,513,517 conversion – diluted Basic net income (loss) per common share $ 0.06 $ (0.12 ) (0.04 ) $ (0.34 ) Diluted net income (loss) per common share $ 0.06 $ (0.12 ) (0.04 ) $ (0.34 ) (a) - Anti-dilutive securities excluded: 10,570,115 152,032 10,777,506 152,032 | Earnings (Loss) Per Share Earnings (loss) per share (“EPS”) is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to Section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) attributable to common stockholders per common share. SCHEDULE OF NET INCOME (LOSS) PER SHARE December 31, 2020 December 31, 2019 Numerator: Net income (loss) attributable to common stockholders $ (3,532,800 ) $ 235,600 Effect of dilutive securities: - - Diluted net income (loss) $ (3,532,800 ) $ 235,600 Denominator: Weighted average common shares outstanding - basic 4,214,418 3,513,517 Dilutive securities (a): Options - - Warrants - - Weighted average common shares outstanding and assumed conversion – diluted 4,214,418 3,513,517 Basic net income (loss) per common share $ (0.84 ) $ 0.07 Diluted net income (loss) per common share $ (0.84 ) $ 0.07 (a) - Anti-dilutive securities excluded: 241,609 139,742 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments. | Fair Value of Financial Instruments For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with a maturity of three months or less to be cash equivalents. There were no | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with a maturity of three months or less to be cash equivalents. There were no |
Accounts Receivable | Accounts Receivable Accounts receivables are reported at the amount the Company expects to collect from outstanding balances. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. The Company determines if receivables are past due based on days outstanding, and amounts are written off when determined to be uncollectible by management. The allowance for doubtful accounts was $ 11,000 0 | Accounts Receivable Accounts receivable are reported at the amount the Company expects to collect from outstanding balances. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. The Company determines if receivables are past due based on days outstanding, and amounts are written off when determined to be uncollectible by management. The allowance for doubtful accounts was $ 0 11,300 |
Property and Equipment and Depreciation | Property and Equipment and Depreciation Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method (after considering their respective estimated residual values) over the estimated useful lives: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Construction Equipment 5 10 Leasehold Improvements The lesser of 10 years or the remaining life of the lease Furniture and Fixtures 5 Computers 3 Vehicles 10 | Property and Equipment and Depreciation Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method (after considering their respective estimated residual values) over the estimated useful lives: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Construction Equipment 10 Leasehold improvements The lesser of 10 years or the remaining life of the lease Furniture and Fixtures 5 Computers 3 Vehicles 10 |
Real Estate Assets | Real Estate Assets Real estate assets are recorded at cost, except when real estate assets are acquired that meet the definition of a business combination in accordance with FASB ASC 805, “Business Combinations,” where acquired assets are recorded at fair value. Interest, property taxes, insurance and other incremental costs (including salaries) directly related to a project are capitalized during the construction period of major facilities and land improvements. The capitalization period begins when activities to develop the parcel commence and ends when the asset constructed is completed. The capitalized costs are recorded as part of the asset to which they relate and are expensed when the underlying asset is sold. The Company capitalized interest from related party borrowings of $ 219,100 323,300 404,400 636,400 264,900 657,900 475,800 1,051,000 A property is classified as “held for sale” when all the following criteria for a plan of sale have been met: (1) Management, having the authority to approve the action, commits to a plan to sell the property; (2) The property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (3) An active program to locate a buyer and other actions required to complete the plan to sell, have been initiated; (4) The sale of the property is probable and is expected to be completed within one year of the contract date; (5) The property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) Actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When all these criteria have been met, the property is classified as “held for sale.” In addition to the annual assessment of potential triggering events in accordance with ASC 360, the Company applies a fair value-based impairment test to the net book value assets on an annual basis and on an interim basis if certain events or circumstances indicate that an impairment loss may have occurred. As of June 30, 2021 and December 31, 2020, the Company did not have any projects that qualified for an impairment charge. | Real Estate Assets Real estate assets are recorded at cost, except when real estate assets are acquired that meet the definition of a business combination in accordance with Financial Accounting Standards Board (“FASB”) ASC 805, “Business Combinations,” where acquired assets are recorded at fair value. Interest, property taxes, insurance, and other incremental costs (including salaries) directly related to a project are capitalized during the construction period of major facilities and land improvements. The capitalization period begins when activities to develop the parcel commence and ends when the asset constructed is completed. The capitalized costs are recorded as part of the asset to which they relate and are expensed when the underlying asset is sold. The Company capitalized interest from related party borrowings of $ 1,024,800 1,229,400 2,401,400 1,563,700 A property is classified as “held for sale” when all the following criteria for a plan of sale have been met: (1) Management, having the authority to approve the action, commits to a plan to sell the property: (2) The property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (3) An active program to locate a buyer and other actions required to complete the plan to sell, have been initiated; (4) The sale of the property is probable and is expected to be completed within one year of the contract date; (5) The property is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (6) Actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When all these criteria have been met, the property is classified as “held for sale.” In addition to the annual assessment of potential triggering events in accordance with ASC 360, the Company applies a fair value-based impairment test to the net book value assets on an annual basis and on an interim basis if certain events or circumstances indicate that an impairment loss may have occurred. As of December 31, 2020, and 2019, the Company did not have any projects that qualified for an impairment charge. |
Revenue and Cost Recognition | Revenue and Cost Recognition ASC 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contract to provide goods or services to customers. In accordance with ASC 606, revenue is recognized when a customer obtains control of the promised good or service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods or services. The provision of ASC 606 includes a five-step process by which the Company determines revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which the Company expects to be entitled in exchange for those goods or services. ASC 606 requires the Company to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, performance obligations are satisfied. A detailed breakdown of the five-step process for the revenue recognition of Entitled Land Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a buyer to purchase the parcel of entitled land. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering entitled land to the customer, which are required to meet certain specifications outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract The parcel is a separate performance obligation for which the specific price is in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Developed Lots Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with the buyer to purchase lots that have completed infrastructure. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering developed lots to the customer, which are required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract All lots are a single performance obligation for the specific price in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Fee Build Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a customer to construct the required infrastructure so that houses can be developed on the lots. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering developed lots which are required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract The nature of the industry involves a number of uncertainties that can affect the current state of the contract. Variable considerations are the estimates made due to a contract modification in the contractual service. Change orders, claims, extras, or back charges are common in contractual services activity as a form of variable consideration. If there is going to be a contract modification, judgment by management will need to be made to determine if the variable consideration is enforceable. The following factors are considered in determining if the variable consideration is enforceable: 1. The customer’s written approval of the scope of the change order; 2. Current contract language that indicates clear and enforceable entitlement relating to the change order; 3. Separate documentation for the change order costs that are identifiable and reasonable; and 4. The Company’s experience in negotiating change orders, especially as it relates to the specific type of contract and change order being evaluated Once the Company receives a contract, it generates a budget of projected costs for the contract based on the contract price. If the scope of the contract during the contractual period needs to be modified, the Company files a change order. The Company does not continue to perform services until the change modification is agreed upon with documentation by both the Company and the customer. There are few times that claims, extras, or back charges are included in the contract. If there are multiple performance obligations to the contract, the costs must be allocated appropriately and consistently to each performance obligation. In the Company’s experience, usually only one performance obligation is stated per contract. If there are multiple services provided for one customer, the Company has a policy of splitting out the services over multiple contracts. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company uses the total costs incurred on the project relative to the total expected costs to satisfy the performance obligation. The input method involves measuring the resources consumed, labor hours expended, costs incurred, time lapsed, or machine hours used relative to the total expected inputs to the satisfaction of the performance obligation. Costs incurred prior to actual contract (i.e. design, engineering, procurement of material, etc.) should not be recognized as the client does not have control of the good/service provided. When the estimate on a contract indicates a loss or claims against costs incurred reduce the likelihood of recoverability of such costs, the Company records the entire estimated loss in the period the loss becomes known. Project contracts typically provide for a schedule of billings or invoices to the customer based on the Company’s job to date percentage of completion of specific tasks inherent in the fulfillment of its performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in the statement of operations can and usually does differ from amounts that can be billed or invoiced to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceed cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in the Company’s balance sheet under the captions “Contract Asset” which is further disclosed in Note 14. Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized on the contract are reflected as a current liability in the Company’s balance sheet under the caption “Billings in excess of costs and estimated earnings.” A detailed breakdown of the five-step process for the revenue recognition of Home Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a home buyer to purchase a lot with a completed house. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering a developed lot with a completed house to the customer, which is required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract Each lot with a completed house is a separate performance obligation, for which the specific price in the contract is allocated. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Construction Materials sold to or received from contractors is as follows: 1. Identify the contract with a customer. There are no signed contracts. Each transaction is verbally agreed to with the customer. 2. Identify the performance obligations in the contract. The Company delivers or receives materials from customers based on the verbal agreement reached. 3. Determine the transaction price. The Company has a set price list for receiving approved fill materials to recycle or provides customers with a combination of said materials. 4. Allocation of the transaction price to performance obligations in the contract. There is only one performance obligation, which is to pick up or deliver the materials. The entire transaction price is therefore allocated to the performance obligation. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The performance obligation is fulfilled, and revenue is recognized when the materials have been received or delivered by the Company. Revenues from contracts with customers are summarized by category as follows for the three and six months ended June 30: SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS 2021 2020 2021 2020 For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Entitled Land $ 9,310,000 $ - $ 9,310,000 $ - Developed Lots - - 7,000,000 - Fee Build 1,348,200 - 1,348,200 - Homes 3,371,700 8,016,400 10,185,900 17,921,000 Construction Materials 102,500 313,400 162,500 349,800 Total Revenue $ 14,132,400 $ 8,329,800 $ 28,006,600 $ 18,270,800 Disaggregation of Revenue from Contracts with Customers The following table disaggregates the Company’s revenue based on the type of sale or service and the timing of satisfaction of performance obligations for the three and six months ended June 30, 2021 and 2020: DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS 2021 2020 2021 2020 For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Performance obligations satisfied at a point in time $ 12,784,200 $ 8,329,800 $ 26,658,400 $ 18,270,800 Performance obligations satisfied over time 1,348,200 - 1,348,200 - Total Revenue $ 14,132,400 $ 8,329,800 $ 28,006,600 $ 18,270,800 | Revenue and Cost Recognition Accounting Standards codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contract to provide goods or services to customers. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provision of ASC 606 includes a five-step process by which we determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which we expect to be entitled in exchange for those goods or services. ASC 606 requires us to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, performance obligations are satisfied. A detailed breakdown of the five-step process for the revenue recognition of Real Estate Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a home buyer to purchase a lot with a completed house. 2. Identify the performance obligations in the contract. Performance obligations of the company include delivering a develop lot with a completed house to the customer, which are required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract Each lot with a completed house is a separate performance obligation, for which the specific price in the contract is allocated. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have further performance obligation once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Construction Materials sold to or received from contractors is as follows: 1. Identify the contract with a customer. There are no signed contracts. Each transaction is verbally agreed to with the customer. 2. Identify the performance obligations in the contract. To deliver or receive materials from customers based on the verbal agreement reached. 3. Determine the transaction price. The Company has a set price list for receiving approved fill materials to recycle or provide customers with a combination of said materials. 4. Allocation of the transaction price to performance obligations in the contract. There is only one performance obligation, which is to pick up or deliver the materials. The entire transaction price is therefore allocated to the performance obligation. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The performance obligation is fulfilled, and revenue is recognized when the materials have been received or delivered by the company. Revenues for Real Estate and Construction Materials: Revenues from contracts with customers are summarized by product category as follows for the years ended December 31: SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS 2020 2019 Real Estate $ 49,814,500 $ 30,683,400 Construction Materials 582,500 270,100 Total Revenue $ 50,397,000 $ 30,953,500 |
Cost of Sales | Cost of Sales Land acquisition costs are allocated to each lot based on the size of the lot in relation to the size of the total project. Development cost and capitalized interest are allocated to lots sold based on the same criteria. Cost relating to the handling of recycled construction materials and converting items into usable construction materials for resale are charged to cost of sales as incurred. | Cost of Sales Land acquisition costs are allocated to each lot based on the size of the lot in relation to the size of the total project. Development cost and capitalized interest are allocated to lots sold based on the same criteria. Cost relating to the handling of recycled construction materials and converting items into usable construction materials for resale are charged to cost of sales as incurred. |
Advertising | Advertising Costs for designing, producing and communicating advertising are expensed as incurred. Advertising expense for the three months ended June 30, 2021 and 2020 was $ 11,500 1,000 Advertising expense for the six months ended June 30, 2021 and 2020 was $ 12,000 8,500 | Advertising Costs for designing, producing, and communicating advertising are expensed as incurred. Advertising expense for the years ended December 31, 2020 and 2019 were $ 37,500 67,500 |
Leases | Leases On January 1, 2019, the Company adopted ASU 2016-02 “ Leases” As part of the adoption the Company elected the practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to: 1. Not separate non-lease components from lease components and instead to account for each separate lease 2. Not to apply the recognition requirements in ASC 842 to short-term leases; and 3. Not record a right of use asset or right of use liability for leases with an asset or liability balance that | Leases In February 2016, the FASB issued ASU 2016-02 “ Leases” On January 1, 2019, the Company adopted ASC 842 using the modified retrospective approach and recognized a right of use (“ROU”) asset and related liability on the consolidated balance sheet in the amount of $ 474,200 As part of the adoption the Company elected the practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to: 1. Not separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease. 2. Not to apply the recognition requirements in ASC 842 to short-term leases. 3. Not record a right of use asset or right of use liability for leases with an asset or liability balance that would be considered immaterial. Refer to Note 12. Leases for additional disclosures required by ASC 842. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss, credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. Management applies the criteria established in the FASB released Accounting Standards Update No. 2019-12, Income taxes (Topic 740) (the Update) to determine if any valuation allowances are needed each year. The Company recognizes a tax benefit for an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. There are no uncertain tax positions as of June 30, 2021 and December 31, 2020. | Income Taxes Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss, credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. Management applies the criteria established in the Financial Accounting Standards Board (FASB) released Accounting Standards Update No. 2019-12, Income taxes (Topic 740) (the Update) to determine if any valuation allowances are needed each year. The Company recognizes a tax benefit for an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. There are no uncertain tax positions as of December 31, 2020 and December 31, 2019. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On December 18, 2019, the FASB released Accounting Standards Update No. 2019-12, Income taxes (Topic 740) (the Update). The Board issued this update as part of its initiative to reduce complexity in accounting standards. The Standard is effective for fiscal years beginning after December 15, 2020. The adoption did not have a material impact on the Company. In August 2020, the FASB issued Accounting Standards Update 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 on January 1, 2021. The adoption of ASU 2020-06 did not have an impact on the Company. On May 3, 2021, the FASB released Accounting Standards Update No. 2021-04, Compensation – Earning Per Share (Topic 260), Debt - Modifications and Extinguishments (subtopic 470-50), Compensation - Stock compensation (Topic 718), Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. FASB issued this update to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example warrants) that remain equity classified after modification or exchange. The Standard is effective for fiscal years beginning after December 15, 2021. The Company does not believe the adoption will have a material impact on the Company. | Recent Accounting Pronouncements On February 25, 2016, the Financial Accounting Standards Board (FASB) released Accounting Standards Update No. 2016-02, Leases (Topic 842) (the Update). This ASU requires an entity to recognize a right-of-use asset (“ROU”) and lease liability for all leases with terms of more than 12 months. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for the Company on January 1, 2019, with early adoption permitted. The adoption has been reflected in the right of use asset and liability on the balance sheet. On December 18, 2019, the Financial Accounting Standards Board (FASB) released Accounting Standards Update No. 2019-12, Income taxes (Topic 740) (the Update). The Board issued this update as part of its initiative to reduce complexity in accounting standards. The Standard is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the effect of this standard. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying value of such assets may not be fully recoverable. Impairment is present when the sum of undiscounted estimates future cash flow expected to result from use of the assets is less than carrying value. If impairment is present, the carrying value of the impaired asset is reduced to its fair value. Fair value is determined based on discounted cash flow or appraised values, depending on the nature of the assets. As of June 30, 2021, and December 31, 2020, there were no impairment losses recognized for long-lived assets. | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying value of such assets may not be fully recoverable. Impairment is present when the sum of undiscounted estimates future cash flow expected to result from use of the assets is less than carrying value. If impairment is present, the carrying value of the impaired asset is reduced to its fair value. Fair value is determined based on discounted cash flow or appraised values, depending on the nature of the assets. As of December 31, 2020, and December 31, 2019, there were no impairment losses recognized for long-lived assets. |
Offering Costs Associated with a Public Offering | Offering Costs Associated with a Public Offering The Company complies with the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “ Expenses of Offering.” On January 15 and 20, 2021, the Company closed on a follow-on public offering and overallotment option, respectively, of common stock. During 2020, the Company incurred approximately $ 65,100 | Offering Costs Associated with a Public Offering The Company complies with the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “ Expenses of Offering.” 1,401,100 On January 15, 2021, we closed on a follow-on public offering and overallotment option, respectively, of our common stock. During 2020, we incurred approximately $ 65,100 |
Reclassification | Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
SCHEDULE OF STATEMENT OF SUBSIDIARIES | The consolidated financial statements include the following subsidiaries of Harbor Custom Development, Inc. as of the reporting period ending dates as follows (all entities are formed as Washington LLCs): SCHEDULE OF STATEMENT OF SUBSIDIARIES Names Dates of Formation Attributable Interest June 30, December 31, 2021 2020 Saylor View Estates, LLC March 30, 2014 51 % 51 % Harbor Materials, LLC* July 5, 2018 N/A 100 % Belfair Apartments, LLC December 3, 2019 100 % 100 % Pacific Ridge CMS, LLC May 24, 2021 100 % N/A Tanglewilde, LLC June 25, 2021 100 % N/A * Harbor Materials, LLC was voluntarily dissolved with the State of Washington as of January 29, 2021. | The consolidated financial statements include the following subsidiaries of Harbor Custom Development, Inc. as of the reporting period ending dates as follows (all entities are formed as Washington LLCs): SCHEDULE OF STATEMENT OF SUBSIDIARIES Names Dates of Formation Attributable Interest 2020 2019 Saylor View Estates, LLC March 30, 2014 51 % 51 % Harbor Excavation, LLC* July 3, 2017 N/A N/A Harbor Materials, LLC** July 5, 2018 100 % 100 % Belfair Apartments, LLC December 3, 2019 100 % 100 % * Harbor Excavation, LLC was voluntarily dissolved with the State of Washington as of June 14, 2019. ** Harbor Material, LLC was voluntarily dissolved with the State of Washington as of January 29, 2020. |
SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS | For the six months ended June 30, 2021 and 2020 when computing fair value of share-based payments, the Company has considered the following variables: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS June 30, 2021 June 30, 2020 Risk-free interest rate 0.23 0.84 1.46 % Exercise price $ 3.36 5.00 $ 2.22 Expected life of grants 2.50 6 5.64 Expected volatility of underlying stock 42.97 56.13 32.39 % Dividends 0 0 | For the years ended December 31, 2020 and 2019 when computing fair value of share-based payments, the Company has considered the following variables: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS December 31, 2020 December 31, 2019 Risk-free interest rate 0.14% 1.46 % 1.56 1.84 % Exercise price $ 2.22 6.50 $ 0.40 Expected life of grants 2.86 6.00 5.0 6.53 Expected volatility of underlying stock 32.39% 51.94 % 31.75 32.89 % Dividends 0 % 0 % |
SCHEDULE OF NET INCOME (LOSS) PER SHARE | The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss attributable to common stockholders per common share. SCHEDULE OF NET INCOME (LOSS) PER SHARE 1 2 3 4 For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net income (loss) attributable to common stockholders $ 931,600 $ (431,100 ) (618,200 ) $ (1,183,100 ) Effect of dilutive securities: - - - - Diluted income (net) loss $ 931,600 $ (431,100 ) (618,200 ) $ (1,183,100 ) Denominator: Weighted average common shares outstanding - basic 14,890,094 3,513,517 14,071,373 3,513,517 Dilutive securities (a): Options 19,778 - - - Warrants 142,653 - - - Weighted average common shares outstanding and assumed 15,052,525 3,513,517 14,071,373 3,513,517 conversion – diluted Basic net income (loss) per common share $ 0.06 $ (0.12 ) (0.04 ) $ (0.34 ) Diluted net income (loss) per common share $ 0.06 $ (0.12 ) (0.04 ) $ (0.34 ) (a) - Anti-dilutive securities excluded: 10,570,115 152,032 10,777,506 152,032 | The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) attributable to common stockholders per common share. SCHEDULE OF NET INCOME (LOSS) PER SHARE December 31, 2020 December 31, 2019 Numerator: Net income (loss) attributable to common stockholders $ (3,532,800 ) $ 235,600 Effect of dilutive securities: - - Diluted net income (loss) $ (3,532,800 ) $ 235,600 Denominator: Weighted average common shares outstanding - basic 4,214,418 3,513,517 Dilutive securities (a): Options - - Warrants - - Weighted average common shares outstanding and assumed conversion – diluted 4,214,418 3,513,517 Basic net income (loss) per common share $ (0.84 ) $ 0.07 Diluted net income (loss) per common share $ (0.84 ) $ 0.07 (a) - Anti-dilutive securities excluded: 241,609 139,742 |
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES | SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Construction Equipment 5 10 Leasehold Improvements The lesser of 10 years or the remaining life of the lease Furniture and Fixtures 5 Computers 3 Vehicles 10 | SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Construction Equipment 10 Leasehold improvements The lesser of 10 years or the remaining life of the lease Furniture and Fixtures 5 Computers 3 Vehicles 10 |
SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS | Revenues from contracts with customers are summarized by category as follows for the three and six months ended June 30: SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS 2021 2020 2021 2020 For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Entitled Land $ 9,310,000 $ - $ 9,310,000 $ - Developed Lots - - 7,000,000 - Fee Build 1,348,200 - 1,348,200 - Homes 3,371,700 8,016,400 10,185,900 17,921,000 Construction Materials 102,500 313,400 162,500 349,800 Total Revenue $ 14,132,400 $ 8,329,800 $ 28,006,600 $ 18,270,800 | Revenues from contracts with customers are summarized by product category as follows for the years ended December 31: SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS 2020 2019 Real Estate $ 49,814,500 $ 30,683,400 Construction Materials 582,500 270,100 Total Revenue $ 50,397,000 $ 30,953,500 |
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS | The following table disaggregates the Company’s revenue based on the type of sale or service and the timing of satisfaction of performance obligations for the three and six months ended June 30, 2021 and 2020: DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS 2021 2020 2021 2020 For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Performance obligations satisfied at a point in time $ 12,784,200 $ 8,329,800 $ 26,658,400 $ 18,270,800 Performance obligations satisfied over time 1,348,200 - 1,348,200 - Total Revenue $ 14,132,400 $ 8,329,800 $ 28,006,600 $ 18,270,800 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment stated at cost, less accumulated depreciation and amortization, consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, 2021 December 31, 2020 Machinery and Equipment $ 9,562,500 $ 8,908,000 Vehicles 71,800 73,500 Furniture and Fixtures 147,600 136,300 Leasehold Improvements 7,000 7,000 Total Fixed Assets 9,788,900 9,124,800 Less Accumulated Depreciation (1,350,100 ) (948,800 ) Fixed Assets, Net $ 8,438,800 $ 8,176,000 | Property and equipment stated at cost, less accumulated depreciation and amortization, consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2020 December 31, 2019 Machinery and Equipment $ 8,908,000 $ 5,654,100 Vehicles 73,500 83,600 Furniture and Fixtures 136,300 54,900 Leasehold Improvements 7,000 7,000 Total Fixed Assets 9,124,800 5,799,600 Less Accumulated Depreciation (948,800 ) (727,700 ) Fixed Assets, Net $ 8,176,000 $ 5,071,900 |
REAL ESTATE (Tables)
REAL ESTATE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Real Estate [Abstract] | ||
SCHEDULE OF REAL ESTATE | Real Estate consisted of the following components: SCHEDULE OF REAL ESTATE June 30, 2021 December 31, 2020 Land Held for Development $ 70,113,200 $ 9,532,800 Construction in Progress 15,104,600 9,042,700 Held for Sale - 1,794,800 Real estate $ 85,217,800 $ 20,370,300 | Real Estate consisted of the following components: SCHEDULE OF REAL ESTATE December 31, 2020 December 31, 2019 Land Held for Development $ 9,532,800 $ 9,707,800 Construction in Progress 9,042,700 12,879,600 Held for Sale 1,794,800 2,239,300 Real estate $ 20,370,300 $ 24,826,700 |
EQUIPMENT LOANS (Tables)
EQUIPMENT LOANS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
SCHEDULE OF EQUIPMENT LOANS | Consists of the following: SCHEDULE OF EQUIPMENT LOANS June 30, 2021 December 31, 2020 Various notes payable to banks and financial institutions with interest rates varying from 0.00 13.89 400 11,600 through 2026 $ 5,418,900 $ 5,595,500 Book value of collateralized equipment: $ 8,064,200 $ 6,475,600 | Consists of the following: SCHEDULE OF EQUIPMENT LOANS December 31, 2020 December 31, 2019 Various notes payable to banks and financial institutions with interest rates varying from 0.00% 14.41% 400 11,600 through 2025 $ 5,595,500 $ 3,476,800 Book value of collateralized equipment: $ 6,475,600 $ 4,539,900 |
SCHEDULE OF FUTURE EQUIPMENT LOAN MATURITIES | Future equipment loan maturities are as follows: SCHEDULE OF FUTURE EQUIPMENT LOAN MATURITIES For the twelve months ended June 30: June 2021 2022 $ 1,657,200 2023 1,616,000 2024 1,452,800 2025 673,700 2026 19,200 Equipment Loans $ 5,418,900 | Future equipment loan maturities are as follows: SCHEDULE OF FUTURE EQUIPMENT LOAN MATURITIES For the years ended December 31: 2021 $ 1,495,300 2022 1,532,200 2023 1,345,300 2024 1,165,100 2025 57,600 Equipment Loans $ 5,595,500 |
NOTE PAYABLE PPP (Tables)
NOTE PAYABLE PPP (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
SCHEDULE OF FUTURE NOTE PAYABLE LOAN MATURITIES | Future note payable loan maturities are as follows: SCHEDULE OF FUTURE NOTE PAYABLE LOAN MATURITIES For the twelve months ended June 30: June 2021 - 2022 $ 2,200 Note Payable $ 2,200 | Future note payable loan maturities are as follows: For the years ended December 31: SCHEDULE OF FUTURE NOTE PAYABLE LOAN MATURITIES 2021 $ 14,600 2022 4,700 Note Payable $ 19,300 |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
SCHEDULE OF STOCK OPTIONS ACTIVITY | The following is a summary of the Company’s option activity: SCHEDULE OF STOCK OPTIONS ACTIVITY Options Weighted Average Exercise Price Outstanding – December 31, 2020 442,172 $ 2.53 Exercisable – December 31, 2020 219,085 $ 1.31 Granted 25,000 $ 3.39 Exercised (45,046 ) $ 0.40 Forfeited/Cancelled - $ - Outstanding – June 30, 2021 422,126 $ 2.80 Exercisable – June 30, 2021 306,117 $ 2.54 | The following is a summary of the Company’s option activity: SCHEDULE OF STOCK OPTIONS ACTIVITY Options Weighted Average Exercise Price Outstanding – December 31, 2018 157,664 $ 0.42 Exercisable – December 31, 2018 - $ - Granted 106,762 $ 0.40 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – December 31, 2019 264,426 $ 0.41 Exercisable – December 31, 2019 117,218 $ 0.42 Granted 213,784 $ 4.79 Exercised - $ - Forfeited/Cancelled (36,038 ) $ 0.40 Outstanding – December 31, 2020 442,172 $ 2.53 Exercisable – December 31, 2020 219,085 $ 1.31 |
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE | SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Number Exercisable Weighted Average Exercise Price $ 0.40 6.50 422,126 6.07 $ 2.80 306,117 $ 2.54 | SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average $ 0.40 6.50 442,172 6.00 $ 2.53 219,085 $ 1.31 |
SCHEDULE OF WARRANTS ACTIVITY | The following is a summary of the Company’s warrant activity: SCHEDULE OF WARRANTS ACTIVITY Warrants Weighted Average Exercise Price Outstanding – December 31, 2018 - $ - Exercisable – December 31, 2018 - $ - Granted 22,524 $ 0.40 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – December 31, 2019 22,524 $ 0.40 Exercisable – December 31, 2019 22,524 $ 0.40 Granted 88,335 $ 7.50 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – December 31, 2020 110,859 $ 6.06 Exercisable – December 31, 2020 22,524 $ 0.40 | |
SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE | SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average $ 0.40 7.50 110,859 5.51 $ 6.06 22,524 $ 0.40 | |
SCHEDULE OF RESTRICTED STOCK UNIT ACTIVITY | The following is a summary of the Company’s RSU activity: SCHEDULE OF RESTRICTED STOCK UNIT ACTIVITY RSU Weighted Average Exercise Price Outstanding – December 31, 2020 34,000 $ 4.53 Exercisable – December 31, 2020 8,500 $ 4.53 Granted - $ - Exercised - $ - Forfeited/Cancelled - $ - Outstanding – June 30, 20201 34,000 $ 4.53 Exercisable – June 30, 2021 25,500 $ 4.53 | The following is a summary of the Company’s RSU activity: SCHEDULE OF RESTRICTED STOCK UNIT ACTIVITY RSU Weighted Average Exercise Price Outstanding – December 31, 2019 - $ - Exercisable – December 31, 2019 - $ - Granted 34,000 $ 4.53 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – December 31, 2020 34,000 $ 4.53 Exercisable – December 31, 2020 8,500 $ 4.53 |
Common Stock Warrant [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
SCHEDULE OF WARRANTS ACTIVITY | The following is a summary of the Company’s Common Stock Warrant activity: SCHEDULE OF WARRANTS ACTIVITY Warrants Weighted Average Exercise Price Outstanding – December 31, 2020 110,859 $ 6.06 Exercisable – December 31, 2020 22,524 $ 0.40 Granted 4,757,665 $ 4.89 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – June 30, 2021 4,868,524 $ 4.92 Exercisable – June 30, 2021 3,804,189 $ 4.97 | |
SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE | SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Number Exercisable Weighted Average Exercise Price $ 0.40 7.50 4,868,524 4.92 $ 4.92 3,804,189 $ 4.97 | |
Preferred Stock Warrant [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
SCHEDULE OF WARRANTS ACTIVITY | The following is a summary of the Company’s Preferred Stock Warrant activity: SCHEDULE OF WARRANTS ACTIVITY Warrants Weighted Average Exercise Price Outstanding – December 31, 2020 - $ - Exercisable – December 31, 2020 - $ - Granted 12,000 $ 24.97 Exercised - $ - Forfeited/Cancelled - $ - Outstanding – June 30, 2021 12,000 $ 24.97 Exercisable – June 30, 2021 - $ - | |
SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE | SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Exercise Number Outstanding Weighted Weighted Number Exercisable Weighted $ 24.97 12,000 4.95 $ 24.97 12,000 $ 24.97 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF COMPANY’S REPORTABLE SEGMENT | SCHEDULE OF COMPANY’S REPORTABLE SEGMENT For the Three Months ended For the Six Months ended June 30, June 30, 2021 2020 2021 2020 Revenue by segment Homes $ 3,474,200 $ 8,329,800 $ 10,348,400 $ 18,270,800 Completed lots - - 7,000,000 - Entitled land 9,310,000 - 9,310,000 - Fee Build 1,348,200 - 1,348,200 - $ 14,132,400 $ 8,329,800 $ 28,006,600 $ 18,270,800 Cost of goods sold by segment Homes $ 2,681,500 $ 7,436,000 $ 8,742,800 $ 17,264,200 Completed lots - - 7,046,400 - Entitled land 6,934,900 - 7,094,200 - Fee Build 1,188,700 - 1,188,700 - $ 10,805,100 $ 7,436,000 $ 24,072,100 $ 17,264,200 Gross profit (loss) by segment Homes $ 792,700 $ 893,800 $ 1,605,600 $ 1,006,600 Completed lots - - (46,400 ) - Entitled land 2,375,100 - 2,215,800 - Fee Build 159,500 - 159,500 - $ 3,327,300 $ 893,800 $ 3,934,500 $ 1,006,600 |
UNCOMPLETED CONTRACTS (Tables)
UNCOMPLETED CONTRACTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Contractors [Abstract] | |
SUMMARY OF COST, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | Costs, estimated earnings and billings on uncompleted contracts are summarized as follows at June 30, 2021 and December 31, 2020: SUMMARY OF COST, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS June 30, 2021 December 31, 2020 Costs incurred on uncompleted contracts $ 1,188,700 $ - Estimated earnings 292,800 - Costs and estimated earnings on uncompleted contracts 1,481,500 - Billings to date 1,287,000 - Costs and estimated earnings in excess of billings on uncompleted contracts 194,500 - Costs and earnings in excess of billings on completed contracts - - Total $ 194,500 $ - Costs in excess of billings $ 194,500 $ - Billings in excess of cost - - Total $ 194,500 $ - |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
SCHEDULE OF COMPONENTS OF LEASE EXPENSE | The components of lease expense were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE Year Ended Year Ended December 31, 2020 December 31, 2019 Finance leases: Depreciation of assets $ 88,000 $ 98,300 Interest on lease liabilities 38,000 52,600 Operating lease expense 328,300 200,800 Total net lease cost $ 454,300 $ 351,700 |
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES | Supplemental balance sheet information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES December 31, 2020 December 31, 2019 Operating leases: Operating lease ROU assets $ 873,800 $ 1,132,700 Total ROU Liabilities $ 841,700 $ 1,115,500 Finance leases: Property and equipment, at cost $ 1,411,100 $ 983,400 Accumulated depreciation 140,400 250,500 Property and equipment, net $ 1,270,700 $ 732,900 Total Finance lease liabilities $ 999,400 $ 520,700 |
SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES | Supplemental cash flow and other information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES Year Ended Year Ended December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (273,800 ) $ (170,700 ) Financing cash flows from finance leases (564,400 ) (185,100 ) Assets obtained in exchange for lease liabilities: Operating leases $ 0 $ 1,286,200 Finance leases 1,043,100 0 Weighted average remaining lease term (in years): Operating leases 3.2 3.8 Finance leases 3.1 2.0 Weighted average discount rate: Operating leases 9.9 % 7.0 % Finance leases 5.2 % 7.98 % |
SCHEDULE OF MINIMUM LEASE PAYMENTS UNDER THE TERMS OF THE LEASES | The minimum lease payments under the terms of the leases are as follows: SCHEDULE OF MINIMUM LEASE PAYMENTS UNDER THE TERMS OF THE LEASES For the years ended December 31, 2020: Operating Leases Finance Leases Total 2021 $ 320,800 $ 397,100 $ 717,900 2022 303,000 269,400 572,400 2023 196,800 264,500 461,300 2024 113,900 161,300 276,200 2025 - - - Total lease payments $ 934,500 $ 1,093,300 $ 2,027,800 Less amount of discount/interest (92,800 ) (93,900 ) (186,700 ) $ 841,700 $ 999,400 $ 1,841,100 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS AND LIABILITIES | The components of net deferred tax assets and liabilities at December 31, 2020 and 2019 are set forth below: SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS AND LIABILITIES December 31, 2020 December 31, 2019 Deferred tax assets: Federal NOL Carryforward $ 1,794,200 $ 2,316,300 UNICAP 193,000 777,800 Lease Liability 176,700 - Stock Based compensation 9,200 - Investments 57,100 - Total assets 2,230,200 3,094,100 Deferred tax liabilities: Property and equipment 1,705,400 2,922,500 Right of use assets 183,500 - Total liabilities 1,888,900 2,922,500 Subtotal deferred tax assets (liabilities) 341,300 171,600 Valuation Allowance (341,300 ) - Net deferred tax assets (liabilities) $ - $ 171,600 |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE AND THE EFFECTIVE TAX RATES | The components of income tax expense and the effective tax rates for the years ended December 31, 2020 and 2019 are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE AND THE EFFECTIVE TAX RATES Years Ended December 31, 2020 2019 Current: Federal $ - $ - Total Current - - Deferred: Federal (224,500 ) (634,600 ) Total Deferred (224,500 ) (634,600 ) Valuation Allowance 341,300 - Total Income Tax (Benefit) Expense $ 116,800 $ (634,600 ) |
SCHEDULE OF EXPECTED INCOME TAX RATE | The expected tax rate differs from the U.S. Federal statutory rate as follows: SCHEDULE OF EXPECTED INCOME TAX RATE 2020 2019 US Federal statutory rate 21 % 21 % Adjustment for Deferred Tax (16.3 %) 124 % PPP Loan forgiveness 3.2 % 0 % Change in Federal Valuation Allowance (9.4 %) 0 % Non-controlling interest (1.3 %) 0 % Other (0.4 %) 0 % Effective Tax Rate (3.2 %) 145 % |
SCHEDULE OF STATEMENT OF SUBSID
SCHEDULE OF STATEMENT OF SUBSIDIARIES (Details) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Saylor View Estates L L C [Member] | |||||
Entity Listings [Line Items] | |||||
Dates of Formation | Mar. 30, 2014 | Mar. 30, 2014 | |||
Attributable Interest | 51.00% | 51.00% | 51.00% | ||
Harbor Materials L L C [Member] | |||||
Entity Listings [Line Items] | |||||
Dates of Formation | Jul. 5, 2018 | Jul. 5, 2018 | [1] | ||
Attributable Interest | [1] | 100.00% | [2] | 100.00% | |
Belfair Apartments L L C [Member] | |||||
Entity Listings [Line Items] | |||||
Dates of Formation | Dec. 3, 2019 | Dec. 3, 2019 | |||
Attributable Interest | 100.00% | 100.00% | 100.00% | ||
Pacific Ridge CMS, LLC, [Member] | |||||
Entity Listings [Line Items] | |||||
Dates of Formation | May 24, 2021 | ||||
Attributable Interest | 100.00% | ||||
Tanglewilde, LLC [Member] | |||||
Entity Listings [Line Items] | |||||
Dates of Formation | Jun. 25, 2021 | ||||
Attributable Interest | 100.00% | ||||
Harbor Excavation L L C [Member] | |||||
Entity Listings [Line Items] | |||||
Dates of Formation | [3] | Jul. 3, 2017 | |||
[1] | Harbor Material, LLC was voluntarily dissolved with the State of Washington as of January 29, 2020. | ||||
[2] | Harbor Materials, LLC was voluntarily dissolved with the State of Washington as of January 29, 2021. | ||||
[3] | Harbor Excavation, LLC was voluntarily dissolved with the State of Washington as of June 14, 2019. |
SCHEDULE OF FAIR VALUE ASSUMPTI
SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS (Details) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||
Risk-free interest rate, minimum | 0.23% | |||
Risk-free interest rate, maximum | 0.84% | |||
Risk-free interest rate | 1.46% | |||
Exercise Price | $ 2.22 | $ 0.40 | ||
Expected life of grants | 5 years 7 months 20 days | |||
Expected volatility of underlying stock, minimum | 42.97% | |||
Expected volatility of underlying stock, maximum | 56.13% | |||
Expected volatility of underlying stock | 32.39% | |||
Dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum [Member] | ||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||
Risk-free interest rate | 0.14% | 156.00% | ||
Exercise Price | $ 3.36 | $ 2.22 | ||
Expected life of grants | 2 years 6 months | 2 years 10 months 9 days | 5 years | |
Expected volatility of underlying stock | 32.39% | 31.75% | ||
Maximum [Member] | ||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||
Risk-free interest rate | 1.46% | 1.84% | ||
Exercise Price | $ 5 | $ 6.50 | ||
Expected life of grants | 6 years | 6 years | 6 years 6 months 10 days | |
Expected volatility of underlying stock | 51.94% | 32.89% |
SCHEDULE OF NET INCOME (LOSS) P
SCHEDULE OF NET INCOME (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Net income (loss) attributable to common stockholders | $ 931,600 | $ (431,100) | $ (618,200) | $ (1,183,100) | $ (3,532,800) | $ 235,600 |
Effect of dilutive securities: | ||||||
Diluted net income (loss) | $ 931,600 | $ (431,100) | $ (618,200) | $ (1,183,100) | $ (3,532,800) | $ 235,600 |
Weighted average common shares outstanding - basic | 14,890,094 | 3,513,517 | 14,071,373 | 3,513,517 | 4,214,418 | 3,513,517 |
Options | 19,778 | |||||
Warrants | 142,653 | |||||
Weighted average common shares outstanding and assumed conversion – diluted | 15,052,525 | 3,513,517 | 14,071,373 | 3,513,517 | 4,214,418 | 3,513,517 |
Basic net income (loss) per common share | $ 0.06 | $ (0.12) | $ (0.04) | $ (0.34) | $ (0.84) | $ 0.07 |
Diluted net income (loss) per common share | $ 0.06 | $ (0.12) | $ (0.04) | $ (0.34) | $ (0.84) | $ 0.07 |
(a) - Anti-dilutive securities excluded: | 10,570,115 | 152,032 | 10,777,506 | 152,032 | 241,609 | 139,742 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Construction Equipment [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property and equipment estimated useful life | 10 years | |
Construction Equipment [Member] | Minimum [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property and equipment estimated useful life | 5 years | |
Construction Equipment [Member] | Maximum [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property and equipment estimated useful life | 10 years | |
Leasehold Improvements [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property and equipment useful lives | The lesser of 10 years or the remaining life of the lease | The lesser of 10 years or the remaining life of the lease |
Furniture and Fixtures [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property and equipment estimated useful life | 5 years | 5 years |
Computers [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property and equipment estimated useful life | 3 years | 3 years |
Vehicles [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property and equipment estimated useful life | 10 years | 10 years |
SCHEDULE OF REVENUES FROM CONTR
SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Total Revenue | $ 14,132,400 | $ 8,329,800 | $ 28,006,600 | $ 18,270,800 | $ 50,397,000 | $ 30,953,500 |
Land [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Total Revenue | 9,310,000 | 9,310,000 | ||||
Developed Lots [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Total Revenue | 7,000,000 | |||||
Fee Build [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Total Revenue | 1,348,200 | 1,348,200 | ||||
Home Building [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Total Revenue | 3,371,700 | 8,016,400 | 10,185,900 | 17,921,000 | ||
Construction Materials [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Total Revenue | $ 102,500 | $ 313,400 | $ 162,500 | $ 349,800 | 582,500 | 270,100 |
Real Estate [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Total Revenue | $ 49,814,500 | $ 30,683,400 |
DISAGGREGATION OF REVENUE FROM
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||||
Total Revenue | $ 14,132,400 | $ 8,329,800 | $ 28,006,600 | $ 18,270,800 | $ 50,397,000 | $ 30,953,500 |
Transferred at Point in Time [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total Revenue | 12,784,200 | 8,329,800 | 26,658,400 | 18,270,800 | ||
Transferred over Time [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total Revenue | $ 1,348,200 | $ 1,348,200 |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 03, 2020 | Sep. 01, 2020 | Nov. 19, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Non-controlling interest | $ (1,291,600) | $ (1,291,600) | $ (1,289,900) | $ (1,060,600) | |||||
Reverse stock split | 1-for-2.22 reverse split of the Company’s common stock, which was effected on April 15, 2020. The reverse split combined each 2.22 shares of the Company’s outstanding common stock into one share of common stock. | 1-for-2.22 reverse split of the Company’s common stock, which was effected on April 15, 2020. The reverse split combined each 2.22 shares of the Company’s outstanding common stock into one share of common stock. | |||||||
Number of financial statements, description | All numbers in these financial statements are rounded to the nearest $100. | All numbers in these financial statements are rounded to the nearest $100. | |||||||
Cash equivalents | 0 | $ 0 | $ 0 | 0 | |||||
Allowance for doubtful accounts | 11,000 | 11,000 | 0 | 11,300 | |||||
Capitalized interest from related party borrowings | 219,100 | $ 323,300 | 404,400 | $ 636,400 | 1,024,800 | 1,229,400 | |||
Capitalized interest from third-party borrowings | 264,900 | 657,900 | 475,800 | 1,051,000 | 2,401,400 | 1,563,700 | |||
Advertising expense | 11,500 | $ 1,000 | 12,000 | $ 8,500 | 37,500 | 67,500 | |||
Offering costs | $ 65,100 | $ 1,401,100 | |||||||
Two Thousand Eighteen Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Reserved shares of common stock issuance | 675,676 | ||||||||
Two Thousand Twenty Restricted Stock Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Reserved shares of common stock issuance | 700,000 | 700,000 |
CONCENTRATION, RISKS, AND UNC_2
CONCENTRATION, RISKS, AND UNCERTAINTIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||||||
Uninsured cash | $ 12,157,000 | $ 12,157,000 | $ 2,146,000 | $ 177,600 | ||
Revenue from contract with customer | 14,132,400 | $ 8,329,800 | 28,006,600 | $ 18,270,800 | 50,397,000 | 30,953,500 |
Customer Concentration Risk [Member] | Lennar Northwest Inc [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Revenue from contract with customer | $ 12,538,000 | $ 7,015,000 | ||||
Customer Concentration Risk [Member] | Lennar Northwest Inc [Member] | Revenue Benchmark [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Revenue from contract with customer | $ 10,658,200 | $ 0 | $ 17,658,200 | $ 0 | ||
Concentration risk revenue percentage | 75.00% | 0.00% | 63.00% | 0.00% | 25.00% | 23.00% |
SCHEDULE OF PROPERTY AND EQUI_2
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||
Total Fixed Assets | $ 9,788,900 | $ 9,124,800 | $ 5,799,600 |
Less Accumulated Depreciation | (1,350,100) | (948,800) | (727,700) |
Fixed Assets, Net | 8,438,800 | 8,176,000 | 5,071,900 |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total Fixed Assets | 9,562,500 | 8,908,000 | 5,654,100 |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total Fixed Assets | 71,800 | 73,500 | 83,600 |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total Fixed Assets | 147,600 | 136,300 | 54,900 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total Fixed Assets | $ 7,000 | $ 7,000 | $ 7,000 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||||||
Depreciation expense | $ 242,900 | $ 144,000 | $ 483,100 | $ 285,900 | $ 619,800 | $ 427,600 |
SCHEDULE OF REAL ESTATE (Detail
SCHEDULE OF REAL ESTATE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Real Estate [Abstract] | |||
Land Held for Development | $ 70,113,200 | $ 9,532,800 | $ 9,707,800 |
Construction in Progress | 15,104,600 | 9,042,700 | 12,879,600 |
Held for Sale | 1,794,800 | 2,239,300 | |
Real estate | $ 85,217,800 | $ 20,370,300 | $ 24,826,700 |
SCHEDULE OF EQUIPMENT LOANS (De
SCHEDULE OF EQUIPMENT LOANS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | |||
Various notes payable to banks and financial institutions with interest rates varying from 0.00% to 14.41%, collateralized by equipment with monthly payments ranging from $400 to $11,600 through 2025: | $ 5,418,900 | $ 5,595,500 | $ 3,476,800 |
Book value of collateralized equipment: | $ 8,064,200 | $ 6,475,600 | $ 4,539,900 |
SCHEDULE OF EQUIPMENT LOANS (_2
SCHEDULE OF EQUIPMENT LOANS (Details) (Parenthetical) - Bank [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Debt maturity date, description | through 2026 | through 2025 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate percentage | 0.00% | 0.00% |
Monthly payments | $ 400 | $ 400 |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate percentage | 13.89% | 14.41% |
Monthly payments | $ 11,600 | $ 11,600 |
SCHEDULE OF FUTURE EQUIPMENT LO
SCHEDULE OF FUTURE EQUIPMENT LOAN MATURITIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | |||
2021 | $ 1,495,300 | ||
2022 | $ 1,657,200 | 1,532,200 | |
2023 | 1,616,000 | 1,345,300 | |
2024 | 1,452,800 | 1,165,100 | |
2025 | 673,700 | 57,600 | |
2026 | 19,200 | ||
Equipment Loans | $ 5,418,900 | $ 5,595,500 | $ 3,476,800 |
CONSTRUCTION LOANS (Details Nar
CONSTRUCTION LOANS (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Debt instrument face amount | $ 27,523,700 | $ 10,092,500 | $ 9,647,700 |
Book value of collateralized real estate | $ 85,217,800 | $ 20,370,300 | $ 24,826,700 |
Construction Loans [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Debt instrument term | 1 year | 1 year | |
Construction Loans [Member] | Minimum [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Debt instrument interest rate percentage | 5.00% | 8.00% | |
Construction Loans [Member] | Maximum [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Debt instrument interest rate percentage | 39.00% | 40.00% |
NOTE PAYABLE D&O INSURANCE (Det
NOTE PAYABLE D&O INSURANCE (Details Narrative) - USD ($) | Aug. 28, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||||||
Note Payable D&O Insurance | $ 0 | $ 0 | $ 741,200 | ||||
Dand O Insurance [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Payment to acquire insurance | $ 1,531,900 | 1,225,500 | |||||
Down payment for insurance | $ 306,400 | ||||||
Debt instrument term | 10 months | ||||||
Debt instrument interest rate | 4.74% | ||||||
Interest and debt expense | $ 16,600 | $ 3,000 | $ 0 | $ 10,300 | $ 0 | ||
Note Payable D&O Insurance | $ 1,225,500 |
SCHEDULE OF FUTURE NOTE PAYABLE
SCHEDULE OF FUTURE NOTE PAYABLE LOAN MATURITIES (Details) - Term Note [Member] - Paycheck Protection Program Loan [Member] - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
2021 | $ 14,600 | |
2022 | 2,200 | 4,700 |
Note Payable | $ 2,200 | $ 19,300 |
NOTE PAYABLE PPP (Details Narra
NOTE PAYABLE PPP (Details Narrative) - USD ($) | Feb. 01, 2021 | Nov. 09, 2020 | Apr. 11, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||||||
Debt instrument face amount | $ 27,523,700 | $ 10,092,500 | $ 9,647,700 | |||
Paycheck Protection Program Loan [Member] | S B A [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument face amount | $ 2,200 | 19,300 | ||||
Term Note [Member] | Paycheck Protection Program Loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument face amount | $ 582,800 | |||||
Interest rate percentage | 1.00% | |||||
Debt instrument payment terms | Beginning in November 2020, the Company will make 18 equal monthly payments of principal and interest with the final payment due in April 2022. The PPP Term Note may be accelerated upon the occurrence of an event of default. | |||||
Term Note [Member] | Paycheck Protection Program Loan [Member] | S B A [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument face amount | $ 19,300 | |||||
Debt forgiveness | $ 10,000 | $ 562,300 | ||||
Term Note [Member] | P P P Loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument payment terms | Beginning in November 2020, 18 equal monthly payments of principal and interest were due with the final payment due in April 2022. The PPP Term Note may be accelerated upon the occurrence of an event of default. |
DEFINED CONTRIBUTION PLAN (Deta
DEFINED CONTRIBUTION PLAN (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Four Zero One K [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer contribution to defined contribution plan | $ 23,200 | $ 0 | $ 49,600 | $ 0 | $ 70,900 | $ 29,800 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | Jun. 22, 2021USD ($) | Jun. 07, 2021USD ($) | May 06, 2021USD ($)a | Apr. 25, 2021USD ($)a | Apr. 20, 2021USD ($) | Mar. 11, 2021USD ($) | Mar. 08, 2021USD ($) | Feb. 16, 2021USD ($) | Jan. 29, 2021USD ($) | Nov. 18, 2020USD ($) | Sep. 17, 2020USD ($)a | Aug. 28, 2020USD ($) | Jun. 15, 2020USD ($) | Mar. 01, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Apr. 25, 2021ft² |
Product Liability Contingency [Line Items] | |||||||||||||||||||
Nonrefundable earnest money | $ 14,500 | $ 896,300 | $ 73,200 | ||||||||||||||||
Payment to acquire property, pland and equipment | $ 175,100 | $ 321,800 | 408,000 | $ 402,800 | |||||||||||||||
Auburn California [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Payment to acquire property, pland and equipment | $ 4,900,000 | $ 4,498,300 | |||||||||||||||||
Sale Agreement [Member] | Horseshoe Bay Texas [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Payment to acquire property, pland and equipment | $ 16,900,000 | $ 2,500,000 | |||||||||||||||||
Sale Agreement [Member] | National Public Builder [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Amount received from sale of finished lots | $ 7,000,000 | ||||||||||||||||||
Nonrefundable earnest money | $ 875,000 | ||||||||||||||||||
Payment to acquire property, pland and equipment | $ 8,910,000 | $ 7,920,000 | |||||||||||||||||
Purchase And Sale Agreement [Member] | Port Orchard Washington [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Area of land | a | 9.6 | ||||||||||||||||||
Payment to acquire property, pland and equipment | $ 1,440,000 | ||||||||||||||||||
Purchase And Sale Agreement [Member] | East Bremerton Washington [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Payment to acquire property, pland and equipment | $ 2,040,000 | ||||||||||||||||||
Purchase And Sale Agreement [Member] | Horseshoe Bay Texas [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Area of land | 31 | 2,700 | |||||||||||||||||
Payment to acquire property, pland and equipment | $ 2,005,200 | $ 4,750,000 | $ 16,900,000 | ||||||||||||||||
Purchase And Sale Agreement [Member] | Punta Gorda Florida [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Area of land | a | 53 | ||||||||||||||||||
Payment to acquire property, pland and equipment | $ 4,700,000 | ||||||||||||||||||
Purchase And Sale Agreement [Member] | Olympia Washington [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Payment to acquire property, pland and equipment | $ 4,425,000 | ||||||||||||||||||
Purchase And Sale Agreement [Member] | Burien Washington [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Payment to acquire property, pland and equipment | $ 2,600,000 | ||||||||||||||||||
Purchase And Sale Agreement [Member] | Auburn California [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Payment to acquire property, pland and equipment | $ 4,900,000 | ||||||||||||||||||
Purchase And Sale Agreements [Member] | Bremerton Washington [Member] | |||||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||||
Payment to acquire property, pland and equipment | $ 1,500,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Dec. 31, 2020 | Sep. 02, 2020 | Aug. 13, 2020 | May 31, 2020 | Apr. 19, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument face amount | $ 10,092,500 | $ 9,647,700 | $ 27,523,700 | $ 27,523,700 | $ 10,092,500 | $ 9,647,700 | ||||||
Interest expense | 85,300 | $ 18,700 | 183,400 | $ 90,300 | 382,900 | 358,300 | ||||||
Payment to acquire property | 175,100 | 321,800 | 408,000 | 402,800 | ||||||||
Distributions to owner | 495,500 | 349,400 | ||||||||||
Amount received in exchage for transfer | 0 | |||||||||||
Land and related mining bond | 495,500 | 495,500 | ||||||||||
Curb Funding, LLC [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument term | 1 year | |||||||||||
Debt instrument interest rate percentage | 12.00% | |||||||||||
Debt discounts | 0 | 0 | 1,100 | |||||||||
Outstanding loan balances | 51,800 | 0 | 0 | 0 | 51,800 | 0 | ||||||
Debt instrument face amount | $ 3,500 | 0 | $ 0 | $ 0 | 3,500 | 0 | ||||||
Olympic Views, LLC [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payment to acquire property | $ 3,430,000 | $ 3,430,000 | ||||||||||
Olympic Views, LLC [Member] | Chief Executive Officer and President [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Ownership percentage | 50.00% | |||||||||||
SGRE, LLC [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Ownership percentage | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||
Percentage of commision payable | 25.00% | 25.00% | 25.00% | 25.00% | ||||||||
Commission payable | $ 0 | $ 0 | ||||||||||
Commission expense | $ 26,800 | 0 | 41,900 | 78,300 | 136,500 | 0 | ||||||
Commission payable | $ 0 | 0 | 0 | 0 | ||||||||
Due to related party | $ 0 | 8,100 | 0 | 8,100 | ||||||||
Richard Schmidktke [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Fees payable | 0 | 500 | 13,500 | |||||||||
Accounting expenses | $ 500 | 12,000 | $ 500 | 34,300 | $ 51,000 | 26,300 | ||||||
Construction Loans [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument term | 1 year | 1 year | ||||||||||
Construction Loans [Member] | Minimum [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument interest rate percentage | 8.00% | 5.00% | 5.00% | 8.00% | ||||||||
Construction Loans [Member] | Maximum [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument interest rate percentage | 40.00% | 39.00% | 39.00% | 40.00% | ||||||||
Construction Loans [Member] | Sound Equity, LLC [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument term | 1 year | |||||||||||
Loan origination fees | $ 465,200 | 0 | $ 552,800 | 0 | ||||||||
Debt discounts | 466,000 | $ 202,500 | ||||||||||
Prepaid interest | 1,141,800 | $ 293,400 | 1,431,100 | 621,300 | ||||||||
Prepaid interest reserve | $ 466,600 | 1,431,600 | 1,431,600 | 466,600 | ||||||||
Outstanding loan balances | 6,489,900 | $ 12,250,200 | 12,250,200 | 6,489,900 | ||||||||
Interest expense | $ 2,800 | 0 | ||||||||||
Construction Loans [Member] | Sound Equity, LLC [Member] | Minimum [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument interest rate percentage | 8.49% | 8.49% | ||||||||||
Construction Loans [Member] | Sound Equity, LLC [Member] | Maximum [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument interest rate percentage | 12.00% | 12.00% | ||||||||||
Construction Loans [Member] | Olympic Views, LLC [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument interest rate percentage | 12.00% | |||||||||||
Outstanding loan balances | 0 | 442,000 | $ 0 | $ 0 | 0 | 442,000 | ||||||
Debt instrument face amount | $ 442,000 | |||||||||||
Interest expense | $ 0 | $ 33,200 | $ 17,400 | 37,600 | ||||||||
Ownership percentage | 50.00% | |||||||||||
Debt instrument maturity date | Apr. 19, 2020 | |||||||||||
Accrued interest | $ 55,000 | |||||||||||
Share issued price per share | $ 6 | |||||||||||
Stock issued during period shares | 82,826 | |||||||||||
Construction Loans [Member] | Sound Capital Loans Inc [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument term | 1 year | |||||||||||
Loan origination fees | $ 418,300 | 771,700 | ||||||||||
Debt discounts | 202,500 | 402,300 | ||||||||||
Prepaid interest reserve | 466,600 | 451,500 | 466,600 | 451,500 | ||||||||
Outstanding loan balances | 6,438,100 | 14,935,000 | 6,438,100 | 14,935,000 | ||||||||
Interest expense | 3,000 | 0 | ||||||||||
Prepaid interest | $ 726,500 | $ 705,700 | $ 726,500 | $ 705,700 | ||||||||
Construction Loans [Member] | Sound Capital Loans Inc [Member] | Minimum [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument interest rate percentage | 7.99% | 7.99% | ||||||||||
Construction Loans [Member] | Sound Capital Loans Inc [Member] | Maximum [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument interest rate percentage | 12.00% | 12.00% |
SCHEDULE OF STOCK OPTIONS ACTIV
SCHEDULE OF STOCK OPTIONS ACTIVITY (Details) - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Outstanding, Beginning balance | 442,172 | 264,426 | 157,664 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 2.53 | $ 0.41 | $ 0.42 |
Options Exercisable, Beginning balance | 219,085 | 117,218 | |
Weighted Average Exercise Price, Exercisable | $ 1.31 | $ 0.42 | |
Options, Granted | 213,784 | 106,762 | |
Weighted Average Exercise Price, Granted | $ 4.79 | $ 0.40 | |
Options, Exercised | |||
Weighted Average Exercise Price, Exercised | |||
Options, Forfeited/Cancelled | (36,038) | ||
Weighted Average Exercise Price, Forfeited/Cancelled | $ 0.40 | ||
Options, Outstanding, Ending balance | 442,172 | 264,426 | |
Weighted Average Exercise Price, Outstanding, Ending balance | 2.80 | $ 2.53 | $ 0.41 |
Options Exercisable, , Ending balance | 219,085 | 117,218 | |
Weighted Average Exercise Price, Exercisable, Ending balanc | $ 2.54 | $ 1.31 | $ 0.42 |
Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Outstanding, Beginning balance | 442,172 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 2.53 | ||
Options Exercisable, Beginning balance | 219,085 | ||
Weighted Average Exercise Price, Exercisable | $ 1.31 | ||
Options, Granted | 25,000 | ||
Weighted Average Exercise Price, Granted | $ 3.39 | ||
Options, Exercised | (45,046) | ||
Weighted Average Exercise Price, Exercised | $ 0.40 | ||
Options, Forfeited/Cancelled | |||
Weighted Average Exercise Price, Forfeited/Cancelled | |||
Options, Outstanding, Ending balance | 422,126 | 442,172 | |
Weighted Average Exercise Price, Outstanding, Ending balance | $ 2.80 | $ 2.53 | |
Options Exercisable, , Ending balance | 306,117 | 219,085 | |
Weighted Average Exercise Price, Exercisable, Ending balanc | $ 2.54 | $ 1.31 |
SCHEDULE OF STOCK OPTIONS OUTST
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE (Details) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||
Exercise Price | ||||
Number of Option Outstanding | 422,126 | 442,172 | ||
Weighed Averate Remaining Contractual Life (in years) | 6 years 25 days | 6 years | ||
Weighted Average Exercise Price, Outstanding, Ending balance | $ 2.80 | $ 2.53 | 0.41 | $ 0.42 |
Number of Option Exercisable | 306,117 | 219,085 | ||
Weighted Average Exercise Price, Exercisable | $ 2.54 | $ 1.31 | $ 0.42 | |
Minimum [Member] | ||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||
Exercise Price | 0.40 | 0.40 | ||
Weighted Average Exercise Price, Exercisable | 3.36 | |||
Maximum [Member] | ||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||
Exercise Price | 6.50 | $ 6.50 | ||
Weighted Average Exercise Price, Exercisable | $ 3.41 |
SCHEDULE OF WARRANTS ACTIVITY (
SCHEDULE OF WARRANTS ACTIVITY (Details) - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common Stock Warrant [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Outstanding, Beginning | 110,859 | ||
Weighted Average Exercise Price, Outstanding, Beginning | $ 6.06 | ||
Warrants Exercisable, Beginning | 22,524 | ||
Weighted Average Exercise Price, Exercisable Beginning | $ 0.40 | ||
Warrants, Granted | 4,757,665 | ||
Weighted Average Exercise Price, Granted | $ 4.89 | ||
Warrants, Exercised | |||
Weighted Average Exercise Price, Exercised | |||
Warrants, Forfeited/Cancelled | |||
Weighted Average Exercise Price, Forfeited/Cancelled | |||
Outstanding, Ending | 4,868,524 | 110,859 | |
Weighted Average Exercise Price, Outstanding, Ending | $ 4.92 | $ 6.06 | |
Warrants Exercisable, Ending | 3,804,189 | 22,524 | |
Weighted Average Exercise Price, Exercisable, Ending | $ 4.97 | $ 0.40 | |
Preferred Stock Warrant [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Outstanding, Beginning | |||
Weighted Average Exercise Price, Outstanding, Beginning | |||
Warrants Exercisable, Beginning | |||
Weighted Average Exercise Price, Exercisable Beginning | |||
Warrants, Granted | 12,000 | ||
Weighted Average Exercise Price, Granted | $ 24.97 | ||
Warrants, Exercised | |||
Weighted Average Exercise Price, Exercised | |||
Warrants, Forfeited/Cancelled | |||
Weighted Average Exercise Price, Forfeited/Cancelled | |||
Outstanding, Ending | 12,000 | ||
Weighted Average Exercise Price, Outstanding, Ending | $ 24.97 | ||
Warrants Exercisable, Ending | |||
Weighted Average Exercise Price, Exercisable, Ending | |||
Warrant [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Outstanding, Beginning | 110,859 | 22,524 | |
Weighted Average Exercise Price, Outstanding, Beginning | $ 6.06 | $ 0.40 | |
Warrants Exercisable, Beginning | 22,524 | 22,524 | |
Weighted Average Exercise Price, Exercisable Beginning | $ 0.40 | $ 0.40 | |
Warrants, Granted | 88,335 | 22,524 | |
Weighted Average Exercise Price, Granted | $ 7.50 | $ 0.40 | |
Warrants, Exercised | |||
Weighted Average Exercise Price, Exercised | |||
Warrants, Forfeited/Cancelled | |||
Weighted Average Exercise Price, Forfeited/Cancelled | |||
Outstanding, Ending | 110,859 | 22,524 | |
Weighted Average Exercise Price, Outstanding, Ending | $ 6.06 | $ 0.40 | |
Warrants Exercisable, Ending | 22,524 | 22,524 | |
Weighted Average Exercise Price, Exercisable, Ending | $ 0.40 | $ 0.40 |
SCHEDULE OF WARRANTS OUTSTANDIN
SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of Option Outstanding | 422,126 | 442,172 |
Common Stock Warrant [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of Option Outstanding | 4,868,524 | |
Weighed Averate Remaining Contractual Life (in years) | 4 years 11 months 1 day | |
Weighted Average Exercise Price | $ 4.92 | |
Number of Option Exercisable | 3,804,189 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | $ 4.97 | |
Common Stock Warrant [Member] | Minimum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Weighted Average Exercise Price, Exercisable | 0.40 | |
Common Stock Warrant [Member] | Maximum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Weighted Average Exercise Price, Exercisable | 7.50 | |
Preferred Stock Warrant [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Weighted Average Exercise Price, Exercisable | $ 24.97 | |
Number of Option Outstanding | 12,000 | |
Weighed Averate Remaining Contractual Life (in years) | 4 years 11 months 12 days | |
Number of Option Exercisable | 12,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | $ 24.97 | |
Warrant [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of Option Outstanding | 110,859 | |
Weighed Averate Remaining Contractual Life (in years) | 5 years 6 months 3 days | |
Weighted Average Exercise Price | $ 24.97 | $ 6.06 |
Number of Option Exercisable | 22,524 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | $ 0.40 | |
Warrant [Member] | Minimum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Weighted Average Exercise Price, Exercisable | 0.40 | |
Warrant [Member] | Maximum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Weighted Average Exercise Price, Exercisable | $ 7.50 |
SCHEDULE OF RESTRICTED STOCK UN
SCHEDULE OF RESTRICTED STOCK UNIT ACTIVITY (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, Beginning | 34,000 | |
Weighted Average Exercise Price, Outstanding, Beginning | $ 4.53 | |
RSU, exercisable, Beginning | 8,500 | |
Weighted Average Exercise Price, Exercisable, Beginning | $ 4.53 | |
RSU, Granted | 34,000 | |
Weighted Average Exercise Price, Granted | $ 4.53 | |
RSU, Exercised | ||
Weighted Average Exercise Price, Exercised | ||
RSU, Forfeited/Cancelled | ||
Weighted Average Exercise Price, Forfeited/cancelled | ||
Outstanding, Ending | 34,000 | 34,000 |
Weighted Average Exercise Price, Outstanding, Ending | $ 4.53 | $ 4.53 |
RSU, Exercisable, Ending | 25,500 | 8,500 |
Weighted Average Exercise Price, Exercisable, Ending | $ 4.53 | $ 4.53 |
STOCKHOLDERS_ EQUITY (DEFICIT_2
STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($) | Jun. 11, 2021 | Jan. 20, 2021 | Jan. 15, 2021 | Jan. 11, 2021 | Dec. 31, 2020 | Sep. 01, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||||||||||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 | ||||||||||||
Common Stock, Shares, Outstanding | 5,636,548 | 14,898,594 | 14,898,594 | 5,636,548 | 3,513,517 | |||||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0 | $ 0 | ||||||||||||
Preferred Stock, Shares Issued | 0 | 1,260,555 | 1,260,555 | 0 | 0 | |||||||||
Preferred stock, dividend rate | 8.00% | |||||||||||||
Redemption price per share | $ 25 | $ 25 | ||||||||||||
Accrued dividends | $ 140,100 | $ 140,100 | ||||||||||||
Net proceeds from issuance of common stock | $ 25,101,000 | $ 10,789,000 | ||||||||||||
Stock options issued | 213,784 | 106,762 | ||||||||||||
Options exercise price | $ 1.31 | $ 2.54 | $ 2.54 | $ 1.31 | $ 0.42 | |||||||||
Stock options, term | 10 years | |||||||||||||
Options and warrants vesting period | 2 years | |||||||||||||
Aggregated fair value of stock options | $ 29,600 | |||||||||||||
Stock options exercised | 219,085 | 219,085 | 117,218 | |||||||||||
Stock options exercised for former employees | ||||||||||||||
Share based compensation, net of forfeitures | $ 115,800 | $ 115,100 | $ 1,100 | $ 115,700 | $ 5,500 | |||||||||
Share based compensation | 138,400 | |||||||||||||
Stock based compensation unrecognised | 38,500 | 38,500 | ||||||||||||
R S U Plan [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Share based compensation | 43,800 | |||||||||||||
Stock based compensation unrecognised | $ 115,500 | 115,500 | ||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Share based compensation | 38,500 | 0 | 77,000 | 0 | ||||||||||
Share-based Payment Arrangement [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Share based compensation | 71,900 | 5,500 | ||||||||||||
Options, intrinsic value for outstanding | 973,800 | 973,800 | 0 | |||||||||||
Options, intrinsic value for exercisable | 706,200 | 706,200 | $ 0 | |||||||||||
Stock based compensation unrecognised | $ 264,600 | $ 264,600 | ||||||||||||
Equity Option [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Share based compensation, net of forfeitures | 77,300 | 1,100 | 153,900 | $ 1,100 | ||||||||||
Options, intrinsic value for outstanding | 552,200 | 552,200 | ||||||||||||
Options, intrinsic value for exercisable | $ 460,600 | $ 460,600 | ||||||||||||
Minimum [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Options exercise price | $ 3.36 | $ 3.36 | ||||||||||||
Stock options exercised for former employees | 0.40 | $ 0.40 | ||||||||||||
Maximum [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Options exercise price | $ 3.41 | 3.41 | ||||||||||||
Stock options exercised for former employees | $ 6.50 | $ 6.50 | ||||||||||||
Employees [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock options issued | 25,000 | |||||||||||||
Former Employee [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock options exercised | 45,046 | 45,046 | ||||||||||||
Stock options exercised for former employees | $ 0.40 | |||||||||||||
Shares exercised as additional paid in capital | $ 18,000 | |||||||||||||
Board Of Directors And Employee [Member] | Share-based Payment Arrangement [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock issued during period shares | 213,784 | 106,762 | ||||||||||||
Share issued price per share | $ 0.40 | |||||||||||||
Stock options, term | 10 years | |||||||||||||
Options and warrants vesting period | 3 years | |||||||||||||
Aggregated fair value of stock options | $ 9,000 | |||||||||||||
Board Of Directors And Employee [Member] | Minimum [Member] | Share-based Payment Arrangement [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Share issued price per share | $ 2.22 | $ 2.22 | ||||||||||||
Term of warrants | 5 years | 5 years | ||||||||||||
Options and warrants vesting period | 1 year | |||||||||||||
Aggregated fair value of stock options | $ 343,700 | |||||||||||||
Board Of Directors And Employee [Member] | Maximum [Member] | Share-based Payment Arrangement [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Share issued price per share | $ 6.50 | $ 6.50 | ||||||||||||
Term of warrants | 10 years | 10 years | ||||||||||||
Options and warrants vesting period | 2 years | |||||||||||||
Consultant [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Warrants to purchase aggregate shares of common stock | 22,524 | |||||||||||||
Exercises price per share | $ 0.40 | |||||||||||||
Term of warrants | 10 years | |||||||||||||
Fair value of warrants | $ 1,600 | |||||||||||||
IPO [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock issued during period shares | 2,031,705 | |||||||||||||
Share issued price per share | $ 6 | |||||||||||||
Number of common stock share sold | 265,005 | |||||||||||||
Gross proceeds from issuance common stock | $ 12,190,200 | |||||||||||||
Net proceeds from issuance of common stock | $ 10,789,000 | |||||||||||||
Warrants to purchase aggregate shares of common stock | 88,335 | 88,335 | 88,335 | 88,335 | ||||||||||
Exercises price per share | $ 7.50 | $ 7.50 | $ 7.50 | $ 7.50 | ||||||||||
Term of warrants | 4 years | 4 years | 4 years | 4 years | ||||||||||
Fair value of warrants | $ 167,400 | $ 167,400 | $ 167,400 | $ 167,400 | ||||||||||
IPO [Member] | Olympic Views, LLC [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Share issued price per share | $ 6 | $ 6 | $ 6 | $ 6 | ||||||||||
Shares issued on conversion of debt | 82,826 | 82,826 | ||||||||||||
Value of shares issued on conversion of debt | $ 442,000 | $ 442,000 | ||||||||||||
Accrued interest | 55,000 | $ 55,000 | $ 55,000 | $ 55,000 | ||||||||||
Followon Offering [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock issued during period shares | 9,200,000 | 9,200,000 | ||||||||||||
Share issued price per share | $ 3 | $ 3 | ||||||||||||
Number of common stock share sold | 1,200,000 | 1,200,000 | ||||||||||||
Gross proceeds from issuance common stock | $ 27,600,000 | $ 27,600,000 | ||||||||||||
Net proceeds from issuance of common stock | $ 25,101,000 | $ 25,101,000 | ||||||||||||
Warrants to purchase aggregate shares of common stock | 400,000 | 400,000 | ||||||||||||
Exercises price per share | $ 3.75 | $ 3.75 | ||||||||||||
Term of warrants | 5 years | 5 years | ||||||||||||
Fair value of warrants | $ 453,800 | $ 453,800 | ||||||||||||
Preferred Stock Offering [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock issued during period shares | 1,200,000 | 60,555 | ||||||||||||
Share issued price per share | $ 5 | |||||||||||||
Number of common stock share sold | 4,140,000 | |||||||||||||
Gross proceeds from issuance common stock | $ 1,406,200 | |||||||||||||
Warrants to purchase aggregate shares of common stock | 540,000 | |||||||||||||
Sale of Stock, Consideration Received on Transaction | $ 30,005,400 | |||||||||||||
Stock issuance cost | $ 28,661,000 | |||||||||||||
Common Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Conversion price per share | $ 4.50 | $ 4.50 | ||||||||||||
Conversion of shares | 5.556 | 5.556 | ||||||||||||
Stock issued during period shares | 9,200,000 | 2,031,705 | ||||||||||||
Share based compensation, net of forfeitures | ||||||||||||||
Warrant One [Member] | Preferred Stock Offering [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Warrants to purchase aggregate shares of common stock | 12,000 | 12,000 | ||||||||||||
Warrant Two [Member] | Preferred Stock Offering [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Warrants to purchase aggregate shares of common stock | 36,000 | 36,000 | ||||||||||||
Exercises price per share | $ 5 | $ 5 | ||||||||||||
Warrant [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Warrants to purchase aggregate shares of common stock | 88,335 | |||||||||||||
Exercises price per share | $ 7.50 | |||||||||||||
Term of warrants | 5 years | |||||||||||||
Fair value of warrants | $ 167,400 | |||||||||||||
Fair value of warrants | $ 3,701,600 | $ 3,701,600 | ||||||||||||
Options and warrants vesting period | 1 year | |||||||||||||
Options, intrinsic value for outstanding | $ 0 | |||||||||||||
Options, intrinsic value for exercisable | $ 0 | |||||||||||||
Warrant [Member] | Investor [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Exercises price per share | $ 5 | $ 5 | ||||||||||||
Warrants term | 5 years | |||||||||||||
Preferred Warrant [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Options, intrinsic value for outstanding | $ 0 | $ 0 | ||||||||||||
Options, intrinsic value for exercisable | 0 | 0 | ||||||||||||
Common Stock Warrant [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Options, intrinsic value for outstanding | 89,200 | 64,000 | 64,000 | $ 89,200 | ||||||||||
Options, intrinsic value for exercisable | $ 89,200 | $ 64,000 | $ 64,000 | $ 89,200 | ||||||||||
Series A Preferred Stock [Member] | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred Stock, Shares Issued | 1,260,555 | 1,260,555 | ||||||||||||
Preferred stock, dividend rate | 8.00% | |||||||||||||
Preferred stock, liquidation preference | $ 25 | $ 25 |
SCHEDULE OF COMPANY_S REPORTABL
SCHEDULE OF COMPANY’S REPORTABLE SEGMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||||
Sales | $ 14,132,400 | $ 8,329,800 | $ 28,006,600 | $ 18,270,800 | $ 50,397,000 | $ 30,953,500 |
Cost of Revenue | 10,805,100 | 7,436,000 | 24,072,100 | 17,264,200 | 48,393,800 | 27,645,100 |
Gross Profit | 3,327,300 | 893,800 | 3,934,500 | 1,006,600 | $ 2,003,200 | $ 3,308,400 |
Homes [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 3,474,200 | 8,329,800 | 10,348,400 | 18,270,800 | ||
Cost of Revenue | 2,681,500 | 7,436,000 | 8,742,800 | 17,264,200 | ||
Gross Profit | 792,700 | 893,800 | 1,605,600 | 1,006,600 | ||
Completed Lots [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 7,000,000 | |||||
Cost of Revenue | 7,046,400 | |||||
Gross Profit | (46,400) | |||||
Entitled Land [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 9,310,000 | 9,310,000 | ||||
Cost of Revenue | 6,934,900 | 7,094,200 | ||||
Gross Profit | 2,375,100 | 2,215,800 | ||||
Fee Build [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 1,348,200 | 1,348,200 | ||||
Cost of Revenue | 1,188,700 | 1,188,700 | ||||
Gross Profit | $ 159,500 | $ 159,500 |
SUMMARY OF COST, ESTIMATED EARN
SUMMARY OF COST, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Contractors [Abstract] | ||
Costs incurred on uncompleted contracts | $ 1,188,700 | |
Estimated earnings | 292,800 | |
Costs and estimated earnings on uncompleted contracts | 1,481,500 | |
Billings to date | 1,287,000 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 194,500 | |
Costs and earnings in excess of billings on completed contracts | ||
Total | 194,500 | |
Costs in excess of billings | 194,500 | |
Billings in excess of cost | ||
Total | $ 194,500 |
UNCOMPLETED CONTRACTS (Details
UNCOMPLETED CONTRACTS (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Contractors [Abstract] | ||
Contract Assets, net | $ 1,481,500 | |
Uncollected billings | 1,287,000 | |
Costs in excess of billings | $ 194,500 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Jul. 29, 2021USD ($) | Jul. 26, 2021USD ($) | Jul. 12, 2021USD ($) | Jul. 09, 2021USD ($) | Jun. 07, 2021USD ($) | May 06, 2021USD ($)a | Apr. 25, 2021USD ($)a | Apr. 20, 2021USD ($) | Mar. 30, 2021USD ($) | Mar. 23, 2021USD ($) | Mar. 18, 2021USD ($) | Mar. 16, 2021USD ($)$ / sharesshares | Mar. 11, 2021USD ($) | Mar. 09, 2021USD ($) | Mar. 08, 2021USD ($) | Mar. 05, 2021USD ($) | Feb. 25, 2021USD ($) | Feb. 22, 2021USD ($) | Feb. 16, 2021USD ($) | Jan. 29, 2021USD ($) | Jan. 21, 2021USD ($) | Jan. 20, 2021USD ($)$ / sharesshares | Jan. 15, 2021USD ($)$ / sharesshares | Nov. 18, 2020USD ($) | Mar. 01, 2021USD ($) | Mar. 31, 2021USD ($)shares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Apr. 25, 2021ft² |
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Net proceeds from issuance of common stock | $ 25,101,000 | $ 10,789,000 | |||||||||||||||||||||||||||||
Stock redeemed, shares | shares | |||||||||||||||||||||||||||||||
Stock redeemed, value | $ 18,000 | ||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | 175,100 | 321,800 | $ 408,000 | $ 402,800 | |||||||||||||||||||||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 69,500 | $ 145,400 | $ 987,200 | ||||||||||||||||||||||||||||
Austin Texas [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 755,000 | ||||||||||||||||||||||||||||||
Auburn California [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 4,900,000 | $ 4,498,300 | |||||||||||||||||||||||||||||
Driftwood Texas [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 1,584,350 | ||||||||||||||||||||||||||||||
Belfair Washington [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 3,915,000 | ||||||||||||||||||||||||||||||
Rocklin California [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 3,944,050 | ||||||||||||||||||||||||||||||
Tacoma Washington [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 2,000,000 | ||||||||||||||||||||||||||||||
Purchase And Sale Agreement [Member] | Horseshoe Bay Texas [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 2,005,200 | $ 4,750,000 | $ 16,900,000 | ||||||||||||||||||||||||||||
Area of land | 31 | 2,700 | |||||||||||||||||||||||||||||
Purchase And Sale Agreement [Member] | Horseshoe Bay Texas [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 60,000 | ||||||||||||||||||||||||||||||
Purchase And Sale Agreement [Member] | Punta Gorda Florida [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 4,700,000 | ||||||||||||||||||||||||||||||
Area of land | a | 53 | ||||||||||||||||||||||||||||||
Purchase And Sale Agreement [Member] | Olympia Washington [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 4,425,000 | ||||||||||||||||||||||||||||||
Purchase And Sale Agreement [Member] | Sacramento California [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 5,544,000 | ||||||||||||||||||||||||||||||
Purchase And Sale Agreement [Member] | Auburn California [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 4,900,000 | ||||||||||||||||||||||||||||||
Purchase And Sale Agreement [Member] | Loomis California [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 1,100,000 | ||||||||||||||||||||||||||||||
Purchase And Sale Agreement [Member] | Belfair Washington [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 8,640,000 | ||||||||||||||||||||||||||||||
Purchase And Sale Agreement [Member] | Gig Harbor Washington [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | 3,050,000 | ||||||||||||||||||||||||||||||
Purchase And Sale Agreement [Member] | Spicewood Texas [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 915,000 | ||||||||||||||||||||||||||||||
Sale Agreement [Member] | National Public Builder [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 8,910,000 | $ 7,920,000 | |||||||||||||||||||||||||||||
Sale Agreement [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 10,440,000 | ||||||||||||||||||||||||||||||
Sale Agreement [Member] | Horseshoe Bay Texas [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 16,900,000 | $ 2,500,000 | |||||||||||||||||||||||||||||
Sale Agreement [Member] | Loomis California [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Payment to acquire property, pland and equipment | $ 6,850,000 | ||||||||||||||||||||||||||||||
Non-Binding Credit Facilities Agreement [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Proceeds from line of credit | $ 158,400,000 | ||||||||||||||||||||||||||||||
Former Employee [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Share price | $ / shares | $ 0.40 | ||||||||||||||||||||||||||||||
Stock redeemed, shares | shares | 45,046 | ||||||||||||||||||||||||||||||
Stock redeemed, value | $ 18,000 | ||||||||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Stock issued | shares | 9,200,000 | 2,031,705 | |||||||||||||||||||||||||||||
Stock redeemed, shares | shares | 45,046 | ||||||||||||||||||||||||||||||
Follow On Public Offering [Member] | Common Stock [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Stock issued | shares | 9,200,000 | 9,200,000 | |||||||||||||||||||||||||||||
Share price | $ / shares | $ 3 | $ 3 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 27,600,000 | $ 27,600,000 | |||||||||||||||||||||||||||||
Warrants issued | shares | 400,000 | 400,000 | |||||||||||||||||||||||||||||
Net proceeds from issuance of common stock | $ 25,256,000 | $ 25,256,000 | |||||||||||||||||||||||||||||
Underwriters Option [Member] | Common Stock [Member] | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Stock issued | shares | 1,200,000 | 1,200,000 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Depreciation of assets | $ 88,000 | $ 98,300 |
Interest on lease liabilities | 38,000 | 52,600 |
Operating lease expense | 328,300 | 200,800 |
Total net lease cost | $ 454,300 | $ 351,700 |
SCHEDULE OF SUPPLEMENTAL BALANC
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 |
Leases | ||||
Operating lease ROU assets | $ 877,400 | $ 873,800 | $ 1,132,700 | $ 474,200 |
Total ROU Liabilities | 852,900 | 841,700 | 1,115,500 | $ 474,200 |
Property and equipment, at cost | 1,411,100 | 983,400 | ||
Accumulated depreciation | 140,400 | 250,500 | ||
Property and equipment, net | 1,270,700 | 732,900 | ||
Total Finance lease liabilities | $ 759,100 | $ 999,400 | $ 520,700 |
SCHEDULE OF SUPPLEMENTAL CASH F
SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Operating cash flows from operating leases | $ (273,800) | $ (170,700) |
Financing cash flows from finance leases | (564,400) | (185,100) |
Operating leases | 0 | 1,286,200 |
Finance leases | $ 1,043,100 | $ 0 |
Weighted average remaining lease term (in years): Operating leases | 3 years 2 months 12 days | 3 years 9 months 18 days |
Weighted average remaining lease term (in years): Finance leases | 3 years 1 month 6 days | 2 years |
Weighted average discount rate: Operating leases | 9.90% | 7.00% |
Weighted average discount rate: Finance leases | 5.20% | 7.98% |
SCHEDULE OF MINIMUM LEASE PAYME
SCHEDULE OF MINIMUM LEASE PAYMENTS UNDER THE TERMS OF THE LEASES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 |
Leases | ||||
Operating Leases, 2021 | $ 320,800 | |||
Finance Leases, 2021 | 397,100 | |||
2021 | 717,900 | |||
Operating Leases, 2022 | 303,000 | |||
Finance Leases, 2022 | 269,400 | |||
2022 | 572,400 | |||
Operating Leases, 2023 | 196,800 | |||
Finance Leases, 2023 | 264,500 | |||
2023 | 461,300 | |||
Operating Leases, 2024 | 113,900 | |||
Finance Leases, 2024 | 161,300 | |||
2024 | 276,200 | |||
Operating Leases, 2025 | ||||
Finance Leases, 2025 | ||||
2025 | ||||
Operating Leases, Total Lease payments | 934,500 | |||
Finance Leases, Total Lease payments | 1,093,300 | |||
Total Lease payments | 2,027,800 | |||
Operating Leases, Less Amount discount/Interest | (92,800) | |||
Finance Leases, Less Amount discount/Interest | (93,900) | |||
Less Amount discount/Interest | (186,700) | |||
Operating lease | $ 852,900 | 841,700 | $ 1,115,500 | $ 474,200 |
Finance Leases | $ 759,100 | 999,400 | $ 520,700 | |
Total lease | $ 1,841,100 |
LEASES (Details Narrative)
LEASES (Details Narrative) | Dec. 31, 2020 |
Leases | |
Lease term | 12 months |
SCHEDULE OF COMPONENTS OF NET D
SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Federal NOL Carryforward | $ 1,794,200 | $ 2,316,300 |
UNICAP | 193,000 | 777,800 |
Lease Liability | 176,700 | |
Stock Based compensation | 9,200 | |
Investments | 57,100 | |
Total assets | 2,230,200 | 3,094,100 |
Property and equipment | 1,705,400 | 2,922,500 |
Right of use assets | 183,500 | |
Total liabilities | 1,888,900 | 2,922,500 |
Subtotal deferred tax assets (liabilities) | 341,300 | 171,600 |
Valuation Allowance | (341,300) | |
Net deferred tax assets (liabilities) | $ 171,600 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE AND THE EFFECTIVE TAX RATES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||||
Federal | ||||||
Total Current | ||||||
Federal | (224,500) | (634,600) | ||||
Total Deferred | (224,500) | (634,600) | ||||
Valuation Allowance | 341,300 | |||||
Total Income Tax (Benefit) Expense | $ 39,900 | $ 10,100 | $ 116,800 | $ (634,600) |
SCHEDULE OF EXPECTED INCOME TAX
SCHEDULE OF EXPECTED INCOME TAX RATE (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
US Federal statutory rate | 21.00% | 21.00% |
Adjustment for Deferred Tax | (16.30%) | 124.00% |
PPP Loan forgiveness | 3.20% | 0.00% |
Change in Federal Valuation Allowance | (9.40%) | 0.00% |
Non-controlling interest | (1.30%) | 0.00% |
Other | (0.40%) | 0.00% |
Effective Tax Rate | (3.20%) | 145.00% |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||||
Change in valuation allowance | $ 341,300 | |||||
Net operating losses | $ 1,059,500 | $ (388,500) | $ (383,100) | $ (1,305,100) | $ (3,490,700) | $ (158,400) |
Limitations on use | These NOLs will not expire but are limited to 80% of taxable income, due to the CARES Act. | |||||
Domestic Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Net operating losses | $ 8,500,000 |