Annual report pursuant to Section 13 and 15(d)

Revenue Recognition

v3.23.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021:

Revenue by Type

2022

2021

Residential

$

25,375,067

$

—

Commercial

1,673,403

—

Service

412,388

—

Commission

61,241

38,162

$

27,522,099

$

38,162

The following table disaggregates revenue based on the timing of satisfaction of the performance obligations for the years ended December 31, 2022 and 2021:

2022

2021

Performance obligations satisfied at a point in time

$

25,848,696

$

38,162

Performance obligations satisfied over time

1,673,403

—

$

27,522,099

$

38,162

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 $1,477,596 and $0 at December 31, 2022 and 2021, respectively. Contract liabilities were $6,990,538 and $0 at December 31, 2022 and 2021, respectively.