Annual report pursuant to Section 13 and 15(d)

Revenue Recognition

v3.24.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2023
Revenue Recognition [Abstract]  
Revenue Recognition NOTE 4 – REVENUE RECOGNITION

In accordance with Accounting Standards Codification (“ASC”) 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for these goods or services.

Disaggregation of revenue

Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that best reflects the consideration we expect to receive in exchange for those goods or services.

The following table disaggregates revenue based on type for the years ended December 31, 2023 and 2022:

Revenue by Type

2023

2022

Residential contracts

$

64,855,898

$

25,375,067

Commercial contracts

11,283,903

1,673,403

Service revenue

3,133,865

412,388

Software revenue

347,550

—

Other

11,493

61,241

$

79,632,709

$

27,522,099

The following table disaggregates revenue based on the timing of satisfaction of the performance obligations for the years ended December 31, 2023 and 2022:

2023

2022

Performance obligations satisfied at a point in time

$

68,348,806

$

25,848,696

Performance obligations satisfied over time

11,283,903

1,673,403

$

79,632,709

$

27,522,099

Contract Balances

Contract assets represent costs and earnings in excess of amounts billed and direct costs, including commissions, financing and permitting fees paid prior to recording revenue. Contract liabilities represent amounts billed to clients in excess of revenue recognized to date and billings in excess of costs and earnings. Contract assets were $57,241 and $1,477,596 at December 31, 2023 and 2022, respectively. Contract liabilities were $2,552,452 and $6,990,538 at December 31, 2023 and 2022, respectively. Due to the shorter-term nature of our contracts, the balances within contract assets and liabilities as of December 31, 2022 has been recognized within cash and revenue, respectively, during the year ended December 31, 2023.