Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No ☒

State the number of shares of the issuer’s common stock outstanding, as of the latest practicable date: 16,385,000 shares of common stock are issued and outstanding as of ~~May 20,~~November 15, 2021.

This Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this Report. These factors include:

You should read the matters described and incorporated by reference in “~~Risk Factors~~““Risk Factors” and the other cautionary statements made in this Report, and incorporated by reference herein, as being applicable to all related forward-looking statements wherever they appear in this Report. We cannot assure you that the forward-looking statements in this Report will prove to be accurate and therefore prospective investors are encouraged not to place undue reliance on forward-looking statements. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf. Other than as required by law, we undertake no obligation to update or revise these forward-looking statements, even though our situation may change in the future.

~~The accompanying notes are an integral part of these consolidated financial statements.~~

	Preferred Stock				Common Stock				Additional Paid in		Accumulated							Preferred Stock				Common Stock				Additional Paid in		Accumulated
	Shares		Par Value		Shares		Par Value		Capital		Deficit			Total				Shares		Par Value		Shares		Par Value		Capital		Deficit			Total

Balance December 31, 2020		-	$	-		14,785,000	$	14,785	$	48,832	$	(209,623	)	$	(146,006	)			—	$	0		14,785,000	$	14,785	$	48,832	$	(209,623	)	$	(146,006	)

Stock-based compensation		-		-		1,600,000		1,600		335,400		-			337,000
Stock–based compensation																			—		0		1,600,000		1,600		335,400		0			337,000

Net loss		-		-		-		-		-		(405,692	)		(405,692	)			—		0		—		0		0		(405,692	)		(405,692	)

Balance March 31, 2021		-	$	-		16,385,000	$	16,385	$	384,232	$	(615,315	)	$	(214,698	)			—		0		16,385,000		16,385		384,232		(615,315	)		(214,698	)

Stock–based compensation																			—		0		—		0		11,333		0			11,333

Preferred Shares issued for Compensation																			1,000		1		—		0		999		0			1,000

Net loss																			—		0		—		0		0		142,206			142,206
Balance June 30, 2021																			1,000		1		16,385,000		16,385		396,564		(473,109	)		(60,159	)

Net loss																			—		0		—		0		0		(56,950	)		(56,950	)
Balance September 30, 2021																			1,000	$	1		16,385,000	$	16,385	$	396,564	$	(530,059	)	$	(117,109	)

Balance December 31, 2019		-	$	-		14,585,000	$	14,585	$	43,365	$	96,445		$	154,395				—	$	0		14,585,000	$	14,585	$	43,365	$	96,445		$	154,395

Net loss		-		-		-		-		-		(331,838	)		(331,838	)			—		0		—		0		0		(331,838	)		(331,838	)

Balance March 31, 2020		-	$	-		14,585,000	$	14,585	$	43,365	$	(235,393	)	$	(177,443	)			—		0		14,585,000		14,585		43,365		(235,393	)		(177,443	)

Net loss																			—		0		—		0		0		(47,052	)		(47,052	)
Balance June 30, 2020																			—		0		14,585,000		14,585		43,365		(282,445	)		(224,495	)

Net loss																			—		0		—		0		0		(17,389	)		(17,389	)
Balance September 30, 2020																			—	$	0		14,585,000	$	14,585	$	43,365	$	(299,834	)	$	(241,884	)

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*																	*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

~~The accompanying notes are an integral part of these consolidated financial statements.~~

For the ~~three months~~Three and Nine Months ended ~~March 31,~~September 30, 2021 and 2020

Reliant Holdings, Inc. (the “Company”) was formed as a Nevada corporation on May 19, 2014. On May 23, 2014, Reliant Holdings, Inc., along with Reliant Pools, Inc., formerly Reliant Pools, G.P., which was formed in September 2013 (“Reliant Pools”) and the shareholders of Reliant Pools, entered into an Agreement for the Exchange of common stock whereby Reliant Pools, Inc. became a wholly-owned subsidiary of Reliant Holdings, Inc. Reliant Holdings, Inc. designs, and installs swimming pools. On October 10, 2018, the Company incorporated a new wholly-owned subsidiary in Texas, Reliant Custom Homes, Inc. During the third quarter of 2019, the Company purchased land on which it intends to construct a custom home. The Company is headquartered in Austin, Texas.

The financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

The consolidated financial statements and related disclosures as of ~~March 31,~~September 30, 2021 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“~~SEC”~~SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, these unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These unaudited financial statements should be read in conjunction with the audited financial statements of the Company for the years ended December 31, 2020 and 2019 included in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 31, 2021. The results of operations for the three and nine months ended ~~March 31,~~September 30, 2021 are not necessarily indicative of the results to be expected for the full ~~year.~~year ended December 31, 2021.

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.

The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company’s continuation as a going concern is dependent upon its ability to generate revenues to sustain its current level of operations. Management believes in their ability to generate revenues to fund its current level of operation. During the ~~three~~nine months ended ~~March 31,~~September 30, 2021, the Company had a net loss and a working capital deficit. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management cannot be certain that such events can be achieved.

~~Home sale revenues~~ - Home sale revenues and related profit are generally recognized when title to and possession of the home are transferred to the buyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied at the home closing date. Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit and classified as cash. Contract liabilities, include customer deposit liabilities related to homes sold but not yet delivered to buyers, totaled $0 at March 31, 2021 and December 31, 2020, related to Home and Land revenue. Substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit.

~~Land sale revenues~~ - We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sales are generally outright sales of specified land parcels with cash consideration due on the closing date, which is generally when performance obligations are satisfied.

Inventory is stated at cost unless the carrying value is determined to not be recoverable, in which case the affected inventory is written down to fair value. Cost includes land acquisition, land development, and home construction costs, including interest, real estate taxes, and certain direct and indirect overhead costs related to development and construction. The specific identification method is used to accumulate home construction costs.

~~We capitalize interest cost into homebuilding inventories. Interest expense is allocated over the period based on the timing of home closings.~~

Cost of revenues includes the construction cost, average lot cost, estimated warranty costs, and closing costs applicable to the home. Sales commissions are classified within selling, general, and administrative expenses. The construction cost of the home includes amounts paid through the closing date of the home, plus an accrual for costs incurred but not yet paid.

~~We assess the recoverability of our land inventory in accordance with the provisions of Accounting Standards Codification (“ASC~~”) Topic 360, “Property, Plant, and Equipment.” We review our home and real estate inventory for indicators of impairment by property during each reporting period. If indicators of impairment are present for a property, generally, an undiscounted cash flow analysis is prepared in order to determine if the carrying value of the assets in that community exceeds the undiscounted cash flows. Generally, if the carrying value of the assets exceeds their estimated undiscounted cash flows, the assets are potentially impaired, requiring a fair value analysis. Our determination of fair value is primarily based on a discounted cash flow model which includes projections and estimates relating to sales prices, construction costs, sales pace, and other factors. However, fair value can be determined through other methods, such as appraisals, contractual purchase offers, and other third-party opinions of value. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. For the three months ended March 31, 2021 and 2020, we recorded $0 of impairment charges.

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income taxes and liabilities are determined based on the difference between financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

~~In accordance with accounting guidance now codified as ASC Topic 260,~~ ”~~Earnings (Loss) per Share,~~” basic loss per share is computed by dividing net loss by weighted average number of shares of common stock outstanding during each period. Diluted earnings loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. There were no dilutive shares outstanding during the three months ended March 31, 2021 and 2020.

The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

A novel strain of coronavirus (“COVID-19”) was first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations, workforce and markets served. While the Company has to date, not suffered any negative effects of COVID-19, the governmental response thereto, or any declines in demand for the Company’s services, the full extent of the COVID-19 outbreak and the ultimate impact on the Company’s operations is uncertain. A prolonged disruption could have a material adverse impact on financial results and business operations of the Company.

~~The Company recognized no bad debt expense during the three months ended March 31, 2021 and 2020.~~

~~The net asset (liability) position for contracts in process consisted of the following:~~

~~The net asset (liability) position for contracts in process is included in the accompanying consolidated balance sheets as follows:~~

~~The Company had gross revenue of $583,061 and $492,307 for the three months ended March 31, 2021 and 2020, respectively.~~

The Company had four customers representing more than 10% of gross revenue, and combined 52% of revenue for the three months ended March 31, 2021. The Company had four customers representing more than 10% of gross revenue and combined 84% of revenue for the three months ended March 31, 2020.

On December 4, 2020, the Company entered into an investor relations agreement and issued a total of 200,000 shares of restricted common stock in exchange for a six-month service period. The stock was valued at $34,000 at the date of grant and will be recognized over the service period. During the three months ended March 31, 2021, the Company recognized $17,000 of expense related to these shares.

On January 27, 2021, the Company issued 700,000 shares of restricted common stock to Elijah May, its sole officer and director, 200,000 shares of restricted common stock to Joel Hefner, the Vice President of Reliant Pools, a non-executive officer position, and 700,000 shares of restricted common stock to Michael Chavez, a consultant to the Company, each in consideration for services rendered. The shares were valued at $0.20 per share, the closing price of the Company’s stock on January 27, 2021. During the three months ended March 31, 2021, the Company recognized $320,000 of expense related to these shares.

The Company leases approximately 1,000 square feet of office space in Austin, Texas. The Company extended the office space lease from October 1, 2020 through September 30, 2021 for a rental rate of $1,850 per month. Lease expense was $5,770 and $5,865 for the three months ended March 31, 2021 and 2020, respectively.

On December 21, 2018, a former client, Brian Moats filed an Original Petition naming Reliant Pools as a defendant in a suit filed in the County Court at Law No. 2 for Travis County, Texas (Cause No. C-1-CV-18-012062). The suit alleged that the Company failed to install a French drain under the pool as required by the terms of the contract, alleged causes of action of breach of express warranty and breach of contract and sought damages of between $100,000 and $200,000. We denied Mr. Moats’ claims. In October 2020, Reliant Pools entered into a memorandum setting forth the proposed terms of a settlement with Mr. Moats. The settlement agreement terms, provide for Reliant Pools to pay Mr. Moats an aggregate of $145,000 (with $40,000 paid on October 30, 2020, $25,000 paid on December 4, 2020, and additional tranches of funds due from January 1, 2021 to March 1, 2022); the entry into an agreed judgment (which may be plead by Mr. Moats if we default in any payment); the provision of a security interest over our accounts receivable to secure amounts due to Mr. Moats; a non-suit of the lawsuit and our agreement to honor a prior warranty on Mr. Moats’ pool.

~~During the three months ended March 31, 2021, the Company paid Mr. Moats $22,500, leaving $57,500 in accrued liabilities related to the above pending lawsuit with Mr. Moats.~~

On April 28, 2020, the Company secured a construction loan to be used to develop the land purchased in the third quarter of 2019. The loan is for $221,000, bears interest at the rate of 6.25% and is repayable one year after issuance. As of March 31, 2021, no proceeds have been drawn on this instrument.

On May 7, 2020, the Company received $51,113 of proceeds from the Small Business Administration’s Paycheck Protection Program (“PPP Loan”). The funds will be subject to repayment and a 1% interest rate if not forgiven in accordance with the program. During the year ended December 31, 2020, the Company applied for loan forgiveness under the provisions of Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (the “~~CARES Act~~”). The forgiveness application was reviewed by both the lending bank and SBA. As of March 31, 2021, the Company had not received a decision from the U.S. Small Business Administration (“SBA”) or lending bank regarding the forgiveness of the loan. On April 27, 2021, the Company was notified that the outstanding principal and accrued interest for the PPP Loan was forgiven in full by the SBA.

~~You should read the matters described and incorporated by reference in “Risk Factors~~” and the other cautionary statements made in this Report, and incorporated by reference herein, as being applicable to all related forward-looking statements wherever they appear in this Report. We cannot assure you that the forward-looking statements in this Report will prove to be accurate and therefore prospective investors are encouraged not to place undue reliance on forward-looking statements. Other than as required by law, we undertake no obligation to update or revise these forward-looking statements, even though our situation may change in the future.

This information should be read in conjunction with the interim unaudited financial statements and the notes thereto included in this Quarterly Report on Form 10-Q, and the audited financial statements and notes thereto and “~~Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on March 31, 2021 (the “Annual Report”).~~

In this Quarterly Report on Form 10-Q, we may rely on and refer to information regarding the industries in which we operate in general from market research reports, analyst reports and other publicly available information. Although we believe that this information is reliable, we cannot guarantee the accuracy and completeness of this information, and we have not independently verified any of it.

~~Unless the context requires otherwise, references to the “Company,” “we,” “us,” “our,” “Reliant”, “Reliant Holdings” and “Reliant Holdings, Inc.” refer specifically to Reliant Holdings, Inc. and its consolidated subsidiaries.~~

~~In addition, unless the context otherwise requires and for the purposes of this Report only:~~

We file annual, quarterly, and current reports, proxy statements and other information with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC like us at ~~http://www.sec.gov~~ ~~(our filings can be found at~~ ~~https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001682265~~). Copies of documents filed by us with the SEC are also available from us without charge, upon oral or written request to our Secretary, who can be contacted at the address and telephone number set forth on the cover page of this Report. Our website address is ~~www.reliantholdingsinc.com. The information on, or that may be accessed through, our website is not incorporated by reference into this Report and should not be considered a part of this Report.~~

~~Summary of The Information Contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations~~

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is provided in addition to the accompanying consolidated financial statements and notes to assist readers in understanding our results of operations, financial condition, and cash flows. MD&A is organized as follows:

~~Our principal executive offices are located at 12343 Hymeadow Drive, Suite 3-A, Austin, Texas 78750, and our telephone number is (512) 407-2623.~~

~~On May 23, 2014, we, along with Reliant Pools, Inc. (“Reliant Pools”) and the stockholders of Reliant Pools, entered into an Agreement for the Exchange of Common Stock (the “Exchange Agreement~~”). Pursuant to the Exchange Agreement, the stockholders of Reliant Pools exchanged 2.1 million shares of common stock, representing 100% of the outstanding common stock of Reliant Pools, for 2.1 million shares of our common stock (the “~~Exchange~~”). As a result of the Exchange, Reliant Pools became our wholly-owned subsidiary. The President of Reliant Pools, and its largest stockholder at the time of the Exchange was Michael Chavez, our then President, then Chief Executive Officer and then sole director. The following shares of restricted common stock were issued in connection with the Exchange: 900,000 shares of common stock to Michael Chavez, our then President, then Chief Executive Officer and then sole director; 750,000 shares of common stock to Elijah May, our current Chief Executive Officer and sole director; and 450,000 shares of common stock to Becky Spohn, our former Controller.

Reliant Pools was originally formed as a Texas General Partnership (Reliant Pools, G.P.) in September 2013, and was owned by Mr. Chavez, Mr. May, Ms. Spohn, and a third party, who subsequently was unable to perform the services required for him to vest his interest, which interest was subsequently terminated, leaving Mr. Chavez, Mr. May and Ms. Spohn as the sole owners of Reliant Pools, G.P. In May 2014, Reliant Pools, G.P. was converted from a Texas General Partnership to a Nevada corporation, Reliant Pools, Inc., with the same ownership as described above at the time of the Exchange.

On October 10, 2018, the Company incorporated a new wholly-owned subsidiary in Texas, Reliant Custom Homes, Inc. The Company is exploring opportunities to expand operations in the Austin, Texas area as a custom home builder. To date, the Company has engaged a consultant in connection with custom home builder services, and has purchased land located in Lago Vista, Texas, in the Texas Hill Country, outside of Austin, Texas, on which it intends to construct a custom home which it then plans to sell. Current plans are for the custom home to be approximately 2,300 square feet. In April 2020, the Company obtained a construction loan for $221,000 for the construction costs associated with the build. As of the date of this Report, the Company has cleared the lot where the home will be built and recently received permits, however the Company has not yet drawn any proceeds on the loan, or began construction.

We, through our wholly-owned subsidiary Reliant Pools (which has been in operation since September 2013), are an award winning, custom, swimming pool construction company located in the greater Austin, Texas market. We assist customers with the design of, and then construct, recreational pools which blend in with the surroundings, geometric pools which complement the home’s architecture and water features (e.g., waterfalls and negative edge pools) which provide the relaxing sounds of moving water. We won four Association of Pool & Spa Professionals (ARSP) Region 3 Design Awards for our designs in 2016 and one award in 2017. Moving forward, we plan on expanding our operations through an accretive business model in which we plan to acquire competitors in both the custom pool construction and pool maintenance/service industries locally, regionally, and nationally, funding permitting.

To date, the majority of our growth has been through referral business. We offer a wide variety of pool projects based upon price and the desires of the client. When our sales personnel meet with a prospective customer, we provide them with an array of projects from the basic pool building to more high-end projects that may include waterfalls, mason work, backyard lighting and in-ground spas to highlight the outdoor living experience.

On October 10, 2018, the Company incorporated a new wholly-owned subsidiary in Texas, Reliant Custom Homes, Inc. The Company is exploring opportunities to expand operations in the Austin, Texas area as a custom home builder. To date, the Company has engaged a consultant in connection with custom home builder services, and has purchased land located in Lago Vista, Texas, in the Texas Hill Country, outside of Austin, Texas, on which it intends to construct a custom home which it then plans to sell. Current plans are for the custom home to be approximately 2,300 square feet. In April 2020, the Company obtained a construction loan for $221,000 for the construction costs associated with the build. As of the date of this Report, the Company has cleared the lot where the home will be built and has recently received permits, however the Company has not yet drawn any proceeds on the loan or began construction.

The construction of our planned custom home is anticipated to be conducted under the supervision of an on-site construction manager. Substantially all of our construction work is planned to be performed by independent subcontractors under contracts that establish a specific scope of work at an agreed-upon price. In addition, we anticipate that our construction field manager will interact with homebuyers throughout the construction process and instruct homebuyers on post-closing home maintenance.

~~We plan to maintain efficient construction operations and use industry and company-specific construction practices.~~

Generally, we anticipate the construction materials to be used in our home builder operations will be readily available from numerous sources. However, the cost of certain building materials, especially lumber, steel, concrete, copper, and petroleum-based materials, is influenced by changes in global commodity prices, national tariffs, and other foreign trade factors. Additionally, the ability to consistently source qualified labor at reasonable prices may be challenging and we cannot determine the extent to which necessary building materials and labor will be available at reasonable prices in the future.

We currently anticipate building custom homes on a build-to-order basis where we do not begin construction of the home until we have a signed contract with a customer. However, we may in the future also build speculative (“~~spec”) homes, which would allow us to compete with existing homes available in the market, especially for homebuyers that require a home within a short time frame.~~

~~We plan to market our custom home services around the end of the third quarter of fiscal 2021.~~

In December 2019, a novel strain of coronavirus, which causes the infectious disease known as COVID-19, was reported in Wuhan, China. The World Health Organization declared COVID-19 a “Public Health Emergency of International Concern” on January 30, 2020 and a global pandemic on March 11, 2020. In March and April 2020, many U.S. states and local jurisdictions, including Travis, County, Texas, where the Company has its operations, began issuing ‘stay-at-home’ orders, which have mostly expired to date. Notwithstanding such ‘stay-at-home’ and similar orders, the Company has actually seen an increase in demand for new pools during the pandemic. The Company believes that this is because homeowners are spending more time at home and possibly because they have more disposable income due to the unavailability of other entertainment choices and travel requirements. However, the full extent of the impact of COVID-19 on our business and operations currently cannot be estimated and will depend on a number of factors including the scope and duration of the global pandemic. For example, it is possible that the current outbreak or continued spread of COVID-19, will cause a global recession, which will result in a decrease in the demand for our services, or future ‘stay-at-home’ orders will prevent us from engaging new clients or completing pool builds then in progress. Additionally, the Company has had issues with sub-contractors coming down with COVID-19 which has caused construction delays and has further seen delays in permitting caused by COVID-19 issues. Furthermore, there is a risk related to permitting taking longer and risk related to labor and equipment shortages. Notwithstanding the above, the demand for pools remains high in Austin and surrounding areas.

Future impacts of the coronavirus and the government’s response to such virus, including declines in spending of disposable income and potential future recessions, cannot be predicted at this time and may result in negative impacts on our operating results, cash flow and prospects, all of which may cause the value of our securities to decline in value.

Currently we believe that we have sufficient cash on hand and will generate sufficient cash through operations to support our operations for the foreseeable future, however, we will continue to evaluate our business operations based on new information as it becomes available and will make changes that we consider necessary in light of any new developments regarding the pandemic.

The pandemic is developing rapidly and the full extent to which COVID-19 will ultimately impact us depends on future developments, including the duration and spread of the virus, virus mutations, and the number of persons who are willing to get vaccinated, as well as potential seasonality of new outbreaks.

~~We had a working capital deficit of $180,133 as of March 31, 2021~~. With our current cash on hand, expected revenues, and based on our current average monthly expenses, we don’t currently anticipate the need for additional funding in order to continue our operations at their current levels, to pay the costs associated with being a public company, for the next 12 months. We may however require additional funding in the future to expand or complete acquisitions. Our plan for the next twelve months is to continue using the same marketing and management strategies and continue providing a quality product with excellent customer service while also seeking to expand our operations organically or through acquisitions as funding and opportunities arise, and, as discussed above, we have also purchased a homesite which we intend to construct a custom home on which we then plan to sell. As our business continues to grow, customer feedback will be integral in making small adjustments to improve the product and overall customer experience. We plan to raise additional required funding when required through the sale of debt or equity, which may not be available on favorable terms, if at all, and may, if sold, cause significant dilution to existing stockholders. If we are unable to access additional capital moving forward, it may hurt our ability to grow and to generate future revenues.

~~For the Three Months Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020~~

We had revenue of $583,061 for the three months ended March 31, 2021, compared to revenue of $492,307 for the three months ended March 31, 2020, an increase of $90,754 or 18.4% from the prior period. We recognize revenue based on the percentage that a job is complete rather than upon completion. As such, total revenue recognized for each period may be different than the product of total completed pools during each period multiplied by the average pool contract price of each pool during such period, as the construction of certain pools may have started in one period and ended in another. Revenue increased during the current period due to an increase in pool count during the comparable periods and general timing of contracts as well as the higher priced pools being completed in the current period.

We had cost of goods sold of $472,505 for the three months ended March 31, 2021, compared to cost of goods sold of $335,183 for the three months ended March 31, 2020, an increase of $137,322 or 41.0% from the prior period.

Cost of goods sold increased mainly due to an increase in pool equipment and masonry, stone and tile. The timing of our cost of goods sold is materially impacted based on the overall scope and timing of the projects we are working on. The expenses which attributed to the increase in cost of goods sold for the three months ended March 31, 2021, compared to the three months ended March 31, 2020, included:

Cost of goods sold represents our pool construction costs, including raw materials, outsourced labor, installed equipment, tile and coping expenses, excavation costs and permit expenses. We anticipate our cost of goods sold increasing in approximate proportion to increases in revenue and decreasing in approximate proportion to decreases in revenue, moving forward, as our cost of goods sold are factored into the price we charge for our pools and represent the cost of pool construction, the majority of which is not fixed and varies depending on the total number of pools and construction projects we complete during each period and the size and complexity of such projects.

We had gross margin of $110,556 for the three months ended March 31, 2021, compared to gross margin of $157,124 for the three months ended March 31, 2020, a decrease of $46,568 or 29.6% from the prior period due to the reasons described above. Gross margin as a percentage of revenue was 19.0% and 31.9% for the three months ended March 31, 2021 and 2020, respectively.

We had operating expenses consisting solely of general and administrative expenses of $515,845 for the three months ended March 31, 2021 (including $337,000 of stock-based expenses described below under “~~Liquidity and Capital Resources~~”), compared to operating expenses consisting solely of general and administrative expenses of $488,865 for the three months ended March 31, 2020. Operating expenses increased by $26,980 or 5.5% from the prior period mainly due to increase in stock-based compensation, payroll expense and professional fees offset with a decrease in lawsuit settlement expense. General and administrative expenses include the salaries of our employees, commissions and the fees paid to contract employees.

We had interest income of $0 for the three months ended March 31, 2021, compared to interest income of $22 for the three months ended March 31, 2020. Interest income was in connection with interest generated by funds the Company maintained in its savings account.

We had interest expense of $403 and $119, for the three months ended March 31, 2021 and 2020, respectively, due to interest paid in connection with the purchase of a car used by our Chief Executive Officer, as described in greater detail under “~~Liquidity and Capital Resources” below.~~

We had net loss of $405,692 for the three months ended March 31, 2021, compared to a net loss of $331,838 for the three months ended March 31, 2020, an increase in net loss of $73,854 or 22.3%, mainly due to the increase in cost of goods sold and increase in general and administrative expenses, offset by the increase in revenues, each as described above.

We had total assets of $409,961 as of March 31, 2021, consisting of total current assets of $374,079, which included cash of $321,291, real estate inventory of $34,233, federal income tax receivable of $416, contract assets of $4,399, and accounts receivable of $13,740 and equipment, net of accumulated depreciation, of $35,882. Federal income tax receivable relates to a payment made by the Company to the United States Treasury in March 2016, in anticipation of Federal income tax the Company estimated would be owed at the end of the 2016 calendar year. There was no tax due for the years ended December 31, 2016, 2017, 2018, 2019 or 2020, due to the utilization of a net loss carryforward and application of prepaid taxes. Included in real estate inventory as of March 31, 2021 is the cost of the land which the Company acquired in the third quarter of 2019, on which it plans to build a custom home. Equipment relates to the vehicle discussed below. Contract assets include estimated earnings in excess of billings on uncompleted contracts.

We had total liabilities of $624,659 as of March 31, 2021, which included current liabilities of $554,212, including accounts payable and accrued liabilities of $132,442 (which included accrued lawsuit settlements of $57,500, contract liabilities, relating to billings in excess of costs and estimated earnings on uncompleted jobs of $414,783, and current portion of note payable of $6,987, and long-term liabilities consisting of a long-term note payable, net of current portion of $70,447 relating to a vehicle (discussed below) and the PPP Note discussed below. The $57,500 of accrued lawsuit settlements represents amounts accrued in connection with the lawsuits described in greater detail under “~~Note 6. Commitments and Contingencies” in the Notes to Consolidated Financial Statements included above.~~

On February 11, 2020, we purchased a Hyundai Genesis G80 for use by Mr. Elijah May, our Chief Executive Officer. The Vehicle had a total purchase price of $50,616, including $11,000 which was paid as a down payment in cash. We entered into a term note, secured by the vehicle, for the remaining amount of the purchase price, which amount accrues interest at the rate of 3.99% per annum and is payable at the rate of $660 per month through maturity on February 27, 2025.

On April 28, 2020, the Company secured a construction loan from First United Bank and Trust Company to be used to develop the land purchased in the third quarter of 2019. The loan is in the amount of $221,000, bears interest at the rate of 6.25% per annum and is repayable on April 28, 2021. As of March 31, 2021, and through the date of this filing, no amount had been advanced on the loan.

~~On May 11, 2020, we (through Reliant Pools) received a loan (the “Loan”) from Wells Fargo Bank N.A. (the “Lender”) in the principal amount of $51,113, pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020. The Loan was evidenced by a promissory note (the “Note~~”), dated effective May 4, 2020, issued by the Company to the Lender. The Note was unsecured, was to mature on May 4, 2022 and accrued interest at a rate of 1.00% per annum, payable monthly commencing on November 2, 2020, following an initial deferral period as specified under the PPP. Proceeds from the Loan were available to the Company to fund designated expenses, including certain payroll costs, rent, utilities and other permitted expenses, in accordance with the PPP. Under the terms of the PPP, up to the entire amount of principal and accrued interest could be forgiven to the extent Loan proceeds were used for qualifying expenses as described in the CARES Act and applicable implementing guidance issued by the U.S. Small Business Administration under the PPP (including that up to 60% of such Loan funds were used for payroll). The Company used the entire Loan amount for designated qualifying expenses and applied for forgiveness of the respective Loan in accordance with the terms of the PPP. On April 27, 2021, the Company was notified that the outstanding principal and accrued interest for the PPP Loan was forgiven in full by the SBA.

~~We had a working capital deficit of $180,133 as of March 31, 2021, compared to a working capital deficit of $110,920 as of December 31, 2020.~~

We had $131,473 of net cash provided by operating activities for the three months ended March 31, 2021, which was mainly due to $405,692 of net loss, offset by an increase of $147,627 in contract liabilities and $337,000 of stock-based compensation. We had $3,674 of net cash provided by operating activities for the three months ended March 31, 2020, due mainly to an increase in accounts payable and accrued expenses of $340,341, offset by net loss of $331,838. Stock based compensation includes the issuance, on January 27, 2021, of 700,000 shares of restricted common stock to Elijah May, its sole officer and director, 200,000 shares of restricted common stock to Joel Hefner, the Vice President of Reliant Pools, a non-executive officer position, and 700,000 shares of restricted common stock to Michael Chavez, a consultant to the Company, each in consideration for services rendered. The shares were valued at $0.20 per share, the closing price of the Company’s stock on January 27, 2021. Also, on December 4, 2020, the Company entered into an investor relations agreement and issued a total of 200,000 shares of restricted common stock in exchange for a six-month service period. The stock was valued at $34,000 at the date of grant and will be recognized over the service period. During the three months ended March 31, 2021, the Company recognized $17,000 of stock-based expense related to these shares.

~~We had $11,000 of net cash used in investing activities for the three months ended March 31, 2020, which was solely due to the down payment on the vehicle purchase described above.~~

We had $2,749 of net cash used by financing activities for the three months ended March 31, 2021, which was due to payments on our vehicle loan. We had $715 of cash used in financing activities for the three months ended March 31, 2020, which was due solely to payments on note payable.

We do not currently have any additional commitments or identified sources of additional capital from third parties or from our officers, directors or majority stockholders. Additional financing may not be available on favorable terms, if at all.

In the future, we may be required to seek additional capital by selling additional debt or equity securities, or otherwise be required to bring cash flows in balance when we approach a condition of cash insufficiency. The sale of additional equity or debt securities, if accomplished, may result in dilution to our then stockholders. Financing may not be available in amounts or on terms acceptable to us, or at all. In the event we are unable to raise additional funding and/or obtain revenues sufficient to support our expenses, we may be forced to curtail or abandon our business operations, and any investment in the Company could become worthless.

~~Emerging Growth Company~~. ~~Section 107 of the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company~~” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

On January 1, 2018, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“(the “new revenue standard”) to all contracts using the modified retrospective method. The adoption of the new revenue standard had no material impact on our condensed consolidated financial statements as it did not require a change in revenue recognition. As such, comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

All of the Company’s revenue is currently generated from the design and installation of swimming pools. As such no further disaggregation of revenue information is provided.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct.

Revenue for our contracts that satisfy the criteria for over time recognition is recognized as the work progresses. The majority of our revenue is derived from construction contracts and projects that typically span between 4 to 12 months. Our construction contracts will continue to be recognized over time because of the continuous transfer of control to the customer as all of the work is performed at the customer’s site and, therefore, the customer controls the asset as it is being constructed. Contract costs include labor, material, and indirect costs.

Revenue for our contracts that do not satisfy the criteria for over time recognition is recognized at a point in time. Substantially all of our revenue recognized at a point in time is for work performed for pool maintenance or repairs. Unlike our construction contracts that use a cost-to-cost input measure for performance, the pool maintenance or repairs utilize an output measure for performance based on the completion of a unit of work. The typical time frame for completion of these services is less than one month. Upon fulfillment of the performance obligation, the customer is provided an invoice (or equivalent) demonstrating transfer of control or completion of service to the customer. We believe that point in time recognition remains appropriate for these contracts and will continue to recognize revenues upon completion of the performance obligation and issuance of an invoice.

Contract modifications are routine in the performance of our contracts. Contracts are often modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract.

On ~~March 31,~~September 30, 2021, we had approximately ~~$3,308,099~~$4,162,256 of remaining performance obligations on our construction contracts, which we also refer to as backlog. We expect to recognize our ~~current~~ backlog as revenue during the ~~remainder~~fourth quarter of ~~2021.~~2021 and during 2022.

Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract.

Contract estimates are based on various assumptions to project the outcome of future events. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, and the performance of subcontractors.

Transaction price for our contracts may include variable consideration, which includes increases to transaction price for approved and unapproved change orders, claims and incentives, and reductions to transaction price for liquidated damages. Change orders, claims and incentives are generally not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as a modification of the existing contract and performance obligation. We estimate variable consideration for a performance obligation at the most likely amount to which we expect to be entitled (or the most likely amount we expect to incur in the case of liquidated damages), utilizing estimation methods that best predict the amount of consideration to which we will be entitled (or will be incurred in the case of liquidated damages). We include variable consideration in the estimated transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur or when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. The effect of variable consideration on the transaction price of a performance obligation is recognized as an adjustment to revenue on a cumulative catch-up basis. To the extent unapproved change orders and claims reflected in transaction price (or excluded from transaction price in the case of liquidated damages) are not resolved in our favor, or to the extent incentives reflected in transaction price are not earned, there could be reductions in, or reversals of, previously recognized revenue. No ~~adjustment~~adjustments on any one contract ~~was~~were material to our ~~condensed~~ consolidated financial statements for the ~~three~~nine months ended ~~March 31, 2021.~~September 30, 2021 and 2020.

The timing of revenue recognition, billings and cash collections results in billed accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) on the consolidated balance sheet. On our construction contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., biweekly or monthly) or upon achievement of contractual milestones. Generally, billing occurs prior to revenue recognition, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period.

~~The Company recognizes~~Home sale revenues - Home sale revenues and related profit are generally recognized when title to and possession of the home are transferred to the buyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied at the home closing date. Home sale contract assets consist of cash from home closings held in escrow for our benefit, typically for less than five days, which are considered deposits in-transit and classified as cash. Contract liabilities, include customer deposit liabilities related to homes sold but not yet delivered to buyers, totaled $0 at September 30, 2021 and December 31, 2020, related to Home and Land revenue. Substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the ~~design~~date of receiving a customer deposit.

Land sale revenues - We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sales are generally outright sales of specified land parcels with cash consideration due on the closing date, which is generally when performance obligations are satisfied.

Income taxes are computed using the asset and ~~installation~~liability method. Under the asset and liability method, deferred income taxes and liabilities are determined based on the difference between financial reporting and tax bases of ~~swimming pools.~~assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, is not expected to be realized.

~~Accounts Receivable and Allowances.~~Loss Per Share The Company does not charge interest to its customers and carries its customers’ receivables at their face amounts, less an allowance for doubtful accounts. Included in accounts receivable are balances billed to customers pursuant to retainage provisions in certain contracts that are due upon completion

In accordance with accounting guidance now codified as ASC Topic 260, “Earnings (Loss) per Share,” basic loss per share is computed by dividing net loss by weighted average number of ~~the contract and acceptance~~shares of common stock outstanding during each period. Diluted earnings loss per share is computed by dividing net loss by the ~~customer, or earlier as provided by~~weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the ~~contract. Based on~~period. There were no dilutive shares outstanding during the Company’s experience in recent years, the majority of customer balances at each balance sheet date are collected within twelve months. As is common practice in the industry, the Company classifies all accounts receivable, including retainage, as current assets. The contracting cycle for certain long-term contracts may extend beyond one year,nine months ended September 30, 2021 and ~~accordingly, collection of retainage on those contracts may extend beyond one year.~~2020.

The Company ~~grants~~does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

The Company recognized $3,000 and $0 of bad debt expense during the nine months ended September 30, 2021 and 2020, respectively.

The net asset (liability) position for contracts in process consisted of the following:

The net asset (liability) position for contracts in process is included in the accompanying consolidated balance sheets as follows:

The Company had gross revenue of $2,006,994 and $1,381,051 for the nine months ended September 30, 2021 and 2020, respectively.

The Company had one customer representing more than 10% of gross revenue, for a total of 12% of revenue for the nine months ended September 30, 2021. The Company had five customers representing more than 10% of gross revenue, and a combined 56% of revenue for the nine months ended September 30, 2020.

On December 4, 2020, the Company entered into an investor relations agreement and issued a total of 200,000 shares of restricted common stock in exchange for a six-month service period. The stock was valued at $34,000 at the date of grant and was recognized over the service period. During the nine months ended September 30, 2021, the Company recognized $28,333 of expense related to these shares.

On January 27, 2021, the Company issued 700,000 shares of restricted common stock to Elijah May, its sole officer and director, 200,000 shares of restricted common stock to Joel Hefner, the Vice President of Reliant Pools, a non-executive officer position, and 700,000 shares of restricted common stock to Michael Chavez, a consultant to the Company, each in consideration for services rendered. The shares were valued at $0.20 per share, the closing price of the Company’s stock on January 27, 2021. During the six months ended June 30, 2021, the Company recognized $320,000 of expense related to these shares.

On June 15, 2021 the Company issued 1,000 shares of its newly designated shares of Series A Preferred Stock to Elijah May, the Company’s Chief Executive Officer and sole director in consideration for services rendered and to be rendered to the Company. Such shares of Series A Preferred Stock vote in aggregate fifty-one percent (51%) of the total vote on all shareholder matters, voting separately as a class. Notwithstanding such voting rights, no change in control of the Company was deemed to have occurred in connection with the issuance since Mr. May controls the vote of 59.1% of the Company’s outstanding common stock and therefore controlled the Company prior to such issuance. The holder of the Series A Preferred Stock is not entitled to receive dividends, has no liquidation preference and no conversion rights. With the unanimous consent or approval of the board members, the Company has the option at its sole discretion to redeem any and all outstanding shares of Series A Preferred Stock for $1.00 per share.

The Company leases approximately 1,000 square feet of office space in Austin, Texas. The Company extended the office space lease from October 1, 2020 through September 30, 2021 for a rental rate of $1,850 per month. Lease expense was $17,530 and $17,415 for the nine months ended September 30, 2021 and 2020, respectively.

During the nine months ended September 30, 2021, the Company paid Mr. Moats $45,000, pursuant to the settlement agreement, leaving $35,000 in accrued liabilities related to the above pending lawsuit with Mr. Moats.

On April 28, 2020, the Company secured a construction loan to be used to develop the land purchased in the third quarter of 2019. The loan is for $221,000, bears interest at the rate of 6.25% and is repayable one year after issuance. As of September 30, 2021, no proceeds have been drawn on this instrument. The loan renewed and has been extended through October 2022.

On May 7, 2020, the Company received $51,113 of proceeds from the Small Business Administration’s Paycheck Protection Program (“PPP Loan”). The funds will be subject to repayment and a 1% interest rate if not forgiven in accordance with the program. During the year ended December 31, 2020, the Company applied for loan forgiveness under the provisions of Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The forgiveness application was reviewed by both the lending bank and SBA. On April 27, 2021, the Company was notified that the outstanding principal and accrued interest for the PPP Loan was forgiven in full by the SBA.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the matters described and incorporated by reference in “Risk Factors” and the other cautionary statements made in this Report, and incorporated by reference herein, as being applicable to all related forward-looking statements wherever they appear in this Report. We cannot assure you that the forward-looking statements in this Report will prove to be accurate and therefore prospective investors are encouraged not to place undue reliance on forward-looking statements. Other than as required by law, we undertake no obligation to update or revise these forward-looking statements, even though our situation may change in the future.

This information should be read in conjunction with the interim unaudited financial statements and the notes thereto included in this Quarterly Report on Form 10-Q, and the audited financial statements and notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on March 31, 2021 (the “Annual Report”).

Certain capitalized terms used below and otherwise defined below, have the meanings given to such terms in the footnotes to our consolidated financial statements included above under “Part I - Financial Information” – “Item 1. Financial Statements”.

Unless the context requires otherwise, references to the “Company,” “we,” “us,” “our,” “Reliant”, “Reliant Holdings” and “Reliant Holdings, Inc.” refer specifically to Reliant Holdings, Inc. and its consolidated subsidiaries.

In addition, unless the context otherwise requires and for the purposes of this Report only:

We file annual, quarterly, and current reports, proxy statements and other information with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC like us at http://www.sec.gov (our filings can be found at https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001682265). Copies of documents filed by us with the SEC are also available from us without charge, upon oral or written request to our Secretary, who can be contacted at the address and telephone number set forth on the cover page of this Report. Our website address is www.reliantholdingsinc.com. The information on, or that may be accessed through, our website is not incorporated by reference into this Report and should not be considered a part of this Report.

Summary of The Information Contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations

Our principal executive offices are located at 12343 Hymeadow Drive, Suite 3-A, Austin, Texas 78750, and our telephone number is (512) 407-2623.

We, through our wholly-owned subsidiary Reliant Pools (which has been in operation since September 2013), are an award winning, custom, swimming pool construction company located in the greater Austin, Texas market. We assist customers with the design of, and then construct, recreational pools which blend in with the surroundings, geometric pools which complement the home’s architecture and water features (e.g., waterfalls and negative edge pools) which provide the relaxing sounds of moving water. Moving forward, we plan on expanding our operations through an accretive business model in which we plan to acquire competitors in both the custom pool construction and pool maintenance/service industries locally, regionally, and nationally, funding permitting.

On October 10, 2018, the Company incorporated a new wholly-owned subsidiary in Texas, Reliant Custom Homes, Inc. The Company is exploring opportunities to expand operations in the Austin, Texas area as a custom home builder. To date, the Company has engaged a consultant in connection with custom home builder services, and has purchased land located in Lago Vista, Texas, in the Texas Hill Country, outside of Austin, Texas, on which it intends to construct a custom home which it then plans to sell. Current plans are for the custom home to be approximately 2,300 square feet. In April 2020, the Company obtained a construction loan for $221,000 for the construction costs associated with the build. As of the date of this Report, the Company has cleared the lot where the home will be built and has recently received permits, however the Company has not yet drawn any proceeds on the loan or began construction. The loan renewed and has been extended through October 2022.

We plan to maintain efficient construction operations and use industry and company-specific construction practices.

Generally, we anticipate the construction materials to be used in our home builder operations will be readily available from numerous sources. However, the cost of certain building materials, especially lumber, steel, concrete, copper, and petroleum-based materials, is influenced by changes in global commodity prices, national tariffs, and other foreign trade ~~credit,~~factors. Additionally, the ability to consistently source qualified labor at reasonable prices may be challenging and we cannot determine the extent to which necessary building materials and labor will be available at reasonable prices in the future.

We currently anticipate building custom homes on a ~~non-collateralized~~build-to-order basis ~~(with~~where we do not begin construction of the ~~exception~~home until we have a signed contract with a customer. However, we may in the future also build speculative (“spec”) homes, which would allow us to compete with existing homes available in the market, especially for homebuyers that require a home within a short time frame.

We plan to market our custom home services around the end of ~~lien rights against~~the fourth quarter of fiscal 2021. The Company is working to have easements released on the property and anticipates pouring the foundation within the next 30 days.

In December 2019, a novel strain of coronavirus, which causes the infectious disease known as COVID-19, was reported in ~~certain cases),~~Wuhan, China. The World Health Organization declared COVID-19 a “Public Health Emergency of International Concern” on January 30, 2020 and a global pandemic on March 11, 2020. In March and April 2020, many U.S. states and local jurisdictions, including Travis, County, Texas, where the Company has its operations, began issuing ‘stay-at-home’ orders, which have mostly expired to ~~its customers~~date. Notwithstanding such ‘stay-at-home’ and similar orders, the Company has actually seen an increase in demand for new pools during the pandemic. The Company believes that this is ~~subject~~because homeowners are spending more time at home and possibly because they have more disposable income due to ~~potential credit~~the unavailability of other entertainment choices and prior travel restrictions. The full extent of the impact of COVID-19 on our business and operations currently cannot be estimated and will depend on a number of factors including the scope and duration of the global pandemic. For example, it is possible that the current outbreak or continued spread of COVID-19, will cause a global recession, which will result in a decrease in the demand for our services, or future restrictions will prevent us from engaging new clients or completing pool builds then in progress. Additionally, the Company has had issues with sub-contractors coming down with COVID-19 which has caused construction delays and has further seen delays in permitting caused by COVID-19 issues. Furthermore, there is a risk related to ~~changes~~permitting taking longer and risk related to labor and equipment shortages. Notwithstanding the above, the demand for pools remains high in ~~business~~Austin and overall economic activity. The Company analyzes specific accounts receivable balances, historical bad debts, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacysurrounding areas.

Future impacts of the ~~allowance~~coronavirus and the government’s response to such virus, including declines in spending of disposable income and potential future recessions, cannot be predicted at this time and may result in negative impacts on our operating results, cash flow and prospects, all of which may cause the value of our securities to decline in value.

Currently we believe that we have sufficient cash on hand and will generate sufficient cash through operations to support our operations for ~~doubtful accounts. In~~ the ~~event~~foreseeable future, however, we will continue to evaluate our business operations based on new information as it becomes available and will make changes that ~~a customer balance~~we consider necessary in light of any new developments regarding the pandemic.

The pandemic is ~~deemed~~developing rapidly and the full extent to ~~be uncollectible,~~which COVID-19 will ultimately impact us depends on future developments, including the ~~account balance is written-off against~~duration and spread of the ~~allowance for doubtful accounts.~~virus, virus mutations, and the number of persons who are willing to get vaccinated and obtain boosters, as well as potential seasonality of new outbreaks.

~~Classification~~Plan of ~~Construction Contract-related Assets~~Operations

We had a working capital deficit of $133,298 as of September 30, 2021. With our current cash on hand, expected revenues, and ~~Liabilities.~~based on our current average monthly expenses, we don’t currently anticipate the need for additional funding in order to continue our operations at their current levels and to pay the costs associated with being a public company for the next 12 months. We may however require additional funding in the future to expand or complete acquisitions. Our plan for the next twelve months is to continue using the same marketing and management strategies and continue providing a quality product with excellent customer service while also seeking to expand our operations organically or through acquisitions as funding and opportunities arise, and, as discussed above, we have also purchased a homesite which we intend to construct a custom home on which we then plan to sell. As our business continues to grow, customer feedback will be integral in making small adjustments to improve the product and overall customer experience. We plan to raise additional required funding when required through the sale of debt or equity, which may not be available on favorable terms, if at all, and may, if sold, cause significant dilution to existing stockholders. If we are unable to access additional capital moving forward, it may hurt our ability to grow and to generate future revenues.

Since the COVID-19 pandemic began we have seen a sharp increase in demand for pools, which we attribute to more people working from home, and sheltering in place. We currently have a backlog which continues into May 2022. We are unclear whether the current demand for pools will continue, if and when, individuals begin working from their offices again. Notwithstanding that, we are currently experiencing delays in obtaining required equipment to start up all the pools we have finished, as equipment is currently being rationed by sellers due to increased demand as a result of the need to replace equipment which was damaged due to the unprecedented 2021 winter storms which affected the Austin area and is expected to get back to normal in the spring, and the overall increase in new pool builds, which is also being negatively affected by manufacturing and shipping delays due to COVID-19. We are also experiencing delays as subcontractors come down with COVID-19. Overall, demand for trade workers is extremely high, which has resulted in higher prices for pools, which we attempt to pass on to customers as much as possible.

For the Three Months Ended September 30, 2021 Compared to the Three Months Ended September 30, 2020

We had revenue of $616,470 for the three months ended September 30, 2021, compared to revenue of $555,073 for the three months ended September 30, 2020, an increase of $61,397 or 11.1% from the prior period. We recognize revenue based on the percentage that a job is complete rather than upon completion. As such, total revenue recognized for each period may be different than the product of total completed pools during each period multiplied by the average pool contract price of each pool during such period, as the construction of certain pools may have started in one period and ended in another. Revenue increased during the current period due to an increase in pool count during the comparable periods and general timing of contracts as well as the higher priced pools being completed in the current period. As discussed above, we have seen an increase in the demand for pools since March 2020, which we believe is due to more people working from home due to the COVID-19 pandemic.

We had cost of goods sold of $523,719 for the three months ended September 30, 2021, compared to cost of goods sold of $407,229 for the three months ended September 30, 2020, an increase of $116,490 or 28.6% from the prior period.

Cost of goods sold increased mainly due to an increase in decking, plaster and labor costs, due to the increased demand we are seeing for such items due to the overall increase in demand for pools in the Austin, Texas area, as well as shortages of labor and increases in labor costs (due to COVID-19 and the overall increase in demand) and both shortages in, and increases in the cost of, equipment, as discussed in greater detail above. The timing of our cost of goods sold is materially impacted based on the overall scope and timing of the projects we are working on. In general, costs of goods sold for the three months ended September 30, 2021 were higher than for the three months ended September 30, 2020, due to an increase in the number of pools we are building. The expenses which attributed to the increase in cost of goods sold for the three months ended September 30, 2021, compared to the three months ended September 30, 2020, included:

We had a gross margin of $92,751 for the three months ended September 30, 2021, compared to a gross margin of $147,844 for the three months ended September 30, 2020, a decrease of $55,093 or 37.3% from the prior period due to the reasons described above. Gross margin as a percentage of revenue was 15% and 26.6% for the three months ended September 30, 2021 and 2020, respectively. Gross margin as a percentage of revenue decreased due to higher construction due to increased demand for materials and labor.

We had operating expenses consisting solely of general and administrative expenses of $149,507 for the three months ended September 30, 2021, compared to operating expenses consisting solely of general and administrative expenses of $164,913 for the three months ended September 30, 2020. Operating expenses decreased by $15,406 or 9.3% from the prior period mainly due to a decrease in professional fees.

We had interest income of $43 for the three months ended September 30, 2021, compared to interest income of $0 for the three months ended September 30, 2020. Interest income was in connection with interest generated by funds the Company maintained in its savings account.

We had interest expense of $237 and $320, for the three months ended September 30, 2021 and 2020, respectively, due to interest paid in connection with the purchase of a car used by our Chief Executive Officer, as described in greater detail under “Liquidity and Capital Resources” below.

We had a net loss of $56,950 for the three months ended September 30, 2021, compared to a net loss of $17,389 for the three months ended September 30, 2020, an increase in net loss of $39,561 or 227.5%, mainly due to the $116,490 or 28.6% increase in cost of goods sold offset by the $61,397 increase in revenues, each as described above.

For the Nine Months Ended September 30, 2021 Compared to the Nine Months Ended September 30, 2020

We had revenue of $2,006,994 for the nine months ended September 30, 2021, compared to revenue of $1,381,051 for the nine months ended September 30, 2020, an increase of $625,943 or 45.3% from the prior period. We recognize revenue based on the percentage that a job is complete rather than upon completion. As such, total revenue recognized for each period may be different than the product of total completed pools during each period multiplied by the average pool contract price of each pool during such period, as the construction of certain pools may have started in one period and ended in another. Revenue increased during the current period due to an increase in pool count during the comparable periods and general timing of contracts as well as the higher priced pools being completed in the current period. As discussed above, we have seen an increase in the demand for pools since March 2020, which we believe is due to more people working from home due to the COVID-19 pandemic. We have also seen an increase in pool costs of approximately 20% compared to last year, due to increases in the costs of materials (described in greater detail below), which increases we have passed on to our customers to the extent possible.

We had cost of goods sold of $1,495,084 for the nine months ended September 30, 2021, compared to cost of goods sold of $974,228 for the nine months ended September 30, 2020, an increase of $520,856 or 53.5% from the prior period.

Cost of goods sold increased due to increases across the board in all components of our cost of goods, but mainly due to labor and pool equipment due to the overall increase in demand for pools in the Austin, Texas area, as well as shortages of labor and increases in labor costs (due to COVID-19 and the overall increase in demand) and both shortages in, and increases in the cost of, equipment, as discussed in greater detail above. The timing of our cost of goods sold is materially impacted based on the overall scope and timing of the projects we are working on. The expenses which attributed to the increase in cost of goods sold for the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020, included:

We had a gross margin of $511,910 for the nine months ended September 30, 2021, compared to a gross margin of $406,823 for the nine months ended September 30, 2020, an increase of $105,087 or 25.8% from the prior period due to the reasons described above. Gross margin as a percentage of revenue was 25.5% and 29.5% for the nine months ended September 30, 2021 and 2020, respectively.

We had operating expenses consisting solely of general and administrative expenses of $883,242 for the nine months ended September 30, 2021, compared to operating expenses consisting solely of general and administrative expenses of $802,262 for the nine months ended September 30, 2020. Operating expenses increased by $80,980 or 10.1% from the prior period mainly due to an increase in stock-based compensation, payroll expense and professional fees offset with a decrease in lawsuit settlement expense. General and administrative expenses include the salaries of our employees, commissions and the fees paid to contract employees.

We had interest income of $49 for the nine months ended September 30, 2021, compared to interest income of $22 for the nine months ended September 30, 2020. Interest income was in connection with interest generated by funds the Company maintained in its savings account.

We had interest expense of $730 and $862, for the nine months ended September 30, 2021 and 2020, respectively, due to interest paid in connection with the purchase of a car used by our Chief Executive Officer, as described in greater detail under “Liquidity and Capital Resources” below.

We had a gain on forgiveness of debt of $51,577 for the nine months ended September 30, 2021, compared to no gain or loss on the forgiveness of debt for the nine months ended September 30, 2020. The gain on forgiveness of debt for the nine months ended September 30, 2021, was in connection with the forgiveness of the PPP Note as discussed below under “Liquidity and Capital Resources”.

We had net loss of $320,436 for the nine months ended September 30, 2021, compared to a net loss of $396,279 for the nine months ended September 30, 2020, an increase in net loss of $75,843 or 19.1% mainly due to the increase in cost of goods sold and increase in general and administrative expenses, offset by the increase in revenues and the non-cash gain on forgiveness of debt, each as described above.

We had total assets of $379,098 as of September 30, 2021, consisting of total current assets of $347,897, which included cash of $280,640, house and real estate inventory of $45,471, federal income tax receivable of $416, contract assets of $21,370, and equipment, net of accumulated depreciation, of $31,201. Federal income tax receivable relates to a payment made by the Company to the United States Treasury in March 2016, in anticipation of Federal income tax the Company estimated would be owed at the end of the 2016 calendar year. There was no tax due for the years ended December 31, 2016, 2017, 2018, 2019 or 2020, due to the utilization of a net loss carryforward and application of prepaid taxes. Included in house and real estate inventory as of September 30, 2021 is the value of the land which the Company acquired in the third quarter of 2019, which it plans to build a custom home on. Equipment relates to the vehicle discussed below. Contract assets include estimated earnings in excess of billings on uncompleted ~~contracts are presented~~contracts. The Company is working to have easements released on the property and anticipates pouring the foundation within the next 30 days.

We had total liabilities of $496,207 as aof September 30, 2021, which included current ~~asset in the accompanying consolidated balance sheets,~~liabilities of $481,195, including accounts payable and accrued liabilities of $107,429 (which included accrued lawsuit settlements of $35,000), contract liabilities, relating to billings in excess of costs and estimated earnings on uncompleted ~~contracts are presented~~jobs of $366,610, and current portion of note payable of $7,156, and long-term liabilities consisting of a long-term note payable, net of current portion of $15,012 relating to a vehicle (discussed below). The $35,000 of accrued lawsuit settlements represents amounts accrued in connection with the lawsuits described in greater detail under “Note 6. Commitments and Contingencies” in the Notes to Consolidated Financial Statements included above. Long term note payable, net of current portion, decreased by $58,296 from December 31, 2020, mainly due to the forgiveness of the PPP Note, as discussed below.

On February 11, 2020, we purchased a Hyundai Genesis G80 for use by Mr. Elijah May, our Chief Executive Officer. The Vehicle had a total purchase price of $50,616, including $11,000 which was paid as a ~~current liability~~down payment in cash. We entered into a term note, secured by the vehicle, for the remaining amount of the purchase price, which amount accrues interest at the rate of 3.99% per annum and is payable at the rate of $660 per month through maturity on February 27, 2025.

On April 28, 2020, the Company secured a construction loan from First United Bank and Trust Company to be used to develop the land purchased in the ~~accompanying consolidated balance sheets.~~third quarter of 2019. The ~~Company’s contracts vary~~loan is in ~~duration,~~the amount of $221,000, bears interest at the rate of 6.25% per annum and is repayable on April 28, 2021. As of September 30, 2021, and through the date of this filing, no amount had been advanced on the loan. The loan renewed and has been extended through October 2022.

On May 11, 2020, we (through Reliant Pools) received a loan (the “Loan”) from Wells Fargo Bank N.A. (the “Lender”) in the principal amount of $51,113, pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020. The Loan was evidenced by a promissory note (the “Note”), dated effective May 4, 2020, issued by the Company to the Lender. The Note was unsecured, was to mature on May 4, 2022 and accrued interest at a rate of 1.00% per annum, payable monthly commencing on November 2, 2020, following an initial deferral period as specified under the PPP. Proceeds from the Loan were available to the Company to fund designated expenses, including certain payroll costs, rent, utilities and other permitted expenses, in accordance with the ~~duration~~PPP. Under the terms of ~~some larger contracts exceeding one year. Consistent~~the PPP, up to the entire amount of principal and accrued interest could be forgiven to the extent Loan proceeds were used for qualifying expenses as described in the CARES Act and applicable implementing guidance issued by the U.S. Small Business Administration under the PPP (including that up to 60% of such Loan funds were used for payroll). The Company used the entire Loan amount for designated qualifying expenses and applied for forgiveness of the respective Loan in accordance with ~~industry practices,~~the terms of the PPP. On April 27, 2021, the Company ~~includes~~was notified that the ~~amounts realizable~~outstanding principal and ~~payable under contracts, which may extend beyond one year,~~accrued interest for the PPP Loan was forgiven in ~~current assets and current liabilities. The vast majority of these balances are settled within one year.~~full by the SBA.

~~Equipment~~~~. Equipment, consisting mainly~~We had a working capital deficit of ~~two vehicles, is stated at cost. The Company depreciates the cost~~$133,298 as of ~~equipment using the straight-line method over the estimated useful lives~~September 30, 2021, compared to a working capital deficit of ~~the assets. When assets are retired or otherwise disposed~~$110,920 as of the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in operations for the period. The cost of maintenance and repairs is charged to operations as incurred; significant renewal improvements are capitalized. Depreciation expense was approximately $2,340 and $3,433 for the three months ended MarchDecember 31, ~~2021 and 2020, respectively. The estimated useful life of the vehicle is five years.~~2020.

We had $94,975 of net cash provided by operating activities for the nine months ended September 30, 2021, which was mainly due to an increase of $99,454 in contract liabilities and $349,333 of stock-based compensation, offset by $320,436 of net loss and $51,577 of gain on forgiveness of debt in connection with the forgiveness of the PPP Note. We had $110,656 of net cash used in operating activities for the nine months ended September 30, 2020, due mainly to net loss of $396,279, offset by $111,484 of increase in accounts payable and accrued expenses and $178,527 in contract liabilities. Stock based compensation includes the issuance, on January 27, 2021, of 700,000 shares of restricted common stock to Elijah May, its sole officer and director, 200,000 shares of restricted common stock to Joel Hefner, the Vice President of Reliant Pools, a non-executive officer position, and 700,000 shares of restricted common stock to Michael Chavez, a consultant to the Company, each in consideration for services rendered. The shares were valued at $0.20 per share, the closing price of the Company’s stock on January 27, 2021. Also, on December 4, 2020, the Company entered into an investor relations agreement and issued a total of 200,000 shares of restricted common stock in exchange for a six-month service period. The stock was valued at $34,000 at the date of grant and was recognized over the service period. The Company also issued Mr. May in June 2021, 1,000 shares of Series A Preferred Stock, in consideration for services rendered (which shares, voting as a class, but together with all other voting shares of the Company, vote 51% of the total shareholder vote on all shareholder matters), which were valued at $1,000. During the nine months ended September 30, 2021, the Company recognized $1,000 of stock-based expense related to these shares.

We had $11,000 of net cash used in investing activities for the nine months ended September 30, 2020, which was solely due to the down payment on the vehicle purchase described above.

We had $6,902 of net cash used in financing activities for the nine months ended September 30, 2021, which was due to payments on our vehicle loan. We had $46,058 of cash provided by financing activities for the nine months ended September 30, 2020, which was due to the PPP Note proceeds, less payments on our vehicle loan.

The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make judgments, assumptions and estimates that affect the amounts reported. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates, and such differences may be material.

“Note 1. The Company and Summary of Significant Accounting Policies” in Part I, Item 1 of this Form 10-Q and “Note 1. The Company, Summary of Significant Accounting Policies and Going Concern” in the Notes to Consolidated Financial Statements in Part II, Item 8, of the 2020 Annual Report, describe the significant accounting policies and methods used in the preparation of the Company’s consolidated financial statements.

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

We have established and maintain a system of disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in our reports filed with the Securities and Exchange Commission pursuant to the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Commission and that such information is accumulated and communicated to our management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), to allow timely decisions regarding required disclosures.

Management, consisting of our CEO and CFO, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. As of ~~March 31,~~September 30, 2021, based on the evaluation of these disclosure controls and procedures, our CEO and CFO has concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in our reports filed with the Securities and Exchange Commission pursuant to the Exchange Act, is recorded properly, processed, summarized and reported within the time periods specified in the rules and forms of the Commission and that such information is accumulated and communicated to our management, including our CEO and CFO, to allow timely decisions regarding required disclosures.

We regularly review our system of internal control over financial reporting to ensure we maintain an effective internal control environment. There were no changes in our internal control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

We may, from time to time, be involved in litigation and claims arising out of our operations in the normal course of business.

Such current litigation or other legal proceedings are described in, and incorporated by reference in, this “Item 1. Legal Proceedings” of this Form 10-Q from, “Part I” - “Item 1. Financial Statements” in the Notes to Consolidated Financial Statements in “~~Note~~“Note 6. Commitments and ~~Contingencies~~”Contingencies”.

The Company is unable to determine the estimate of the probable or reasonable possible loss or range of losses arising from the above referenced unsettled legal proceedings.

Additionally, the outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s financial condition and operating results for that reporting period could be materially adversely affected.

There have been no material changes from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 31, 2021, under the heading “~~Item~~“Item 1A. Risk ~~Factors~~”Factors”, which are incorporated by reference herein, except as discussed below, and investors should review the risks provided in the Annual Report and below, prior to making an investment in the Company. The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those described in the Annual Report, under “~~Item~~“Item 1A. Risk ~~Factors~~”Factors” and below, any one or more of which could, directly or indirectly, cause the Company’s actual financial condition and operating results to vary materially from past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, operating results and stock price.

The risk factor entitled “Our operations may be adversely affected by global epidemics, pandemics and similar health issues. Our business may be materially and adversely disrupted by the present outbreak and worldwide spread of COVID-19, including measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it.” from the Form 10-K is replaced and superseded by the following:

Our operations may be adversely affected by global epidemics, pandemics and similar health issues. Our business may be materially and adversely disrupted by the present outbreak and worldwide spread of COVID-19, including measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it.

An epidemic, pandemic or similar serious public health issue, and the measures undertaken by governmental authorities to address it, could significantly disrupt or prevent us from operating our business in the ordinary course for an extended period, and thereby, and/or along with any associated economic and/or social instability or distress, have a material adverse impact on our consolidated financial statements.

On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic and recommended containment and mitigation measures. On March 13, 2020, the United States declared a national emergency concerning the outbreak, and several states and municipalities have declared public health emergencies. Along with these declarations, there have been extraordinary and wide-ranging actions taken by international, federal, state and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions across the United States and the world, including quarantines, and “stay-at-home” orders and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations. Specifically, Travis County and Austin, Texas, where the Company operates, issued “stay-at-home” and social distancing orders beginning in mid-April 2020, which have ~~mostly~~ expired to date.

To date, we have not experienced any material negative effects from, or declines in business relating to, COVID-19 and/or Travis County, Texas’s response to the coronavirus, which has included “stay-at-home” and social distancing orders. However, we are currently experiencing delays in obtaining required equipment to start up all the ~~Company has had issues with sub-contractors coming~~pools we have finished, as equipment is currently being rationed by sellers due to increased demand as a result of the need to replace equipment which was damaged due to the unprecedented 2021 winter storms which affected the Austin area, and the overall increase in new pool builds, which is also being negatively affected by manufacturing and shipping delays due to COVID-19. We are also experiencing delays as subcontractors come down with ~~COVID-19~~COVID-19. Overall, demand for trade workers is extremely high, which has ~~caused construction delays and has further seen delays~~resulted in ~~permitting caused by COVID-19 issues.~~higher prices for pools, which we attempt to pass on to customers as much as possible. Furthermore, there is a risk related to permitting taking longer and risk related to labor and equipment shortages. Notwithstanding the above, the demand for pools remains high in Austin and surrounding areas. Notwithstanding that, we are uncertain of the potential full magnitude or duration of the business and economic impacts from the unprecedented public health effort to contain and combat the spread of COVID-19, which include, among other things, significant volatility in financial markets and a sharp decrease in the value of equity securities, including our common stock. In addition, we can provide no assurance as to whether the COVID-19 public health effort will be intensified to such an extent that we will not be able to conduct any business operations at all for an indefinite period.

Our business could also be negatively impacted over the medium-to-longer term if the disruptions related to COVID-19 decrease consumer confidence generally or with respect to constructing a pool and/or purchasing a home; cause civil unrest; or precipitate a prolonged economic downturn and/or an extended rise in unemployment or tempering of wage growth, any of which could lower demand for our products; impair our ability to sell and build pools in a typical manner or at all, generate revenues and cash flows, and/or access to lending markets (or significantly increase the costs of doing so), as may be necessary to sustain our business; increase the costs or decrease the supply of building materials or the availability of subcontractors and other talent, including as a result of infections or medically necessary or recommended self-quarantining, or governmental mandates to direct production activities to support public health efforts. The inherent uncertainty surrounding COVID-19, due in part to rapidly changing governmental directives, public health challenges and progress, the unknown real-world efficacy of vaccines and boosters and the public’s willingness to obtain such vaccines and boosters, and market reactions thereto, also makes it more challenging for our management to estimate the future performance of our business and develop strategies to generate growth or achieve our initial or any revised objectives for the remainder of 2021 and beyond.

Should the adverse impacts described above (or others that are currently unknown) occur, whether individually or collectively, we would expect to experience, among other things, decreases in new pool contracts, pools built, average selling prices, revenues and net income, and such impacts could be material to our consolidated financial statements. In addition, should the COVID-19 public health effort intensify to such an extent that we cannot operate at all, we may generate few or no new pool contracts and/or completed pools during the applicable period, which could be prolonged. Along with a potential increase in cancellations of pool contracts, if there are prolonged government restrictions on our business and our customers, and/or an extended economic recession, we could be unable to produce revenues and cash flows sufficient to operate our business. Such a circumstance could, among other things, exhaust our available liquidity (and ability to access liquidity sources), which could cause the value of our common stock to decline in value or become worthless.

The risk factor entitled “We will require additional financing, and we may not be able to raise funds on favorable terms or at all.” from the Form 10-K is replaced and superseded by the following:

We may require additional financing, and we may not be able to raise funds on favorable terms or at all.

We had a working capital deficit of ~~$180,133~~$133,298 as of ~~March 31,~~September 30, 2021. With our current cash on hand, expected revenues, and based on our current average monthly expenses, we don’t currently anticipate the need for additional funding in order to continue our operations at their current levels and to pay the costs associated with being a public company for the next 12 months. We may however require additional funding in the future to expand or complete acquisitions. In the event we require additional funding in the future, the most likely source of future funds presently available to us will be through the sale of equity capital. Any sale of share capital will result in dilution to existing stockholders. Furthermore, we may incur debt in the future, and may not have sufficient funds to repay our future indebtedness or may default on our future debts, jeopardizing our business viability.

We may not be able to borrow or raise additional capital in the future to meet our needs or to otherwise provide the capital necessary to expand our operations and business, which might result in the value of our common stock decreasing in value or becoming worthless. Additional financing may not be available to us on terms that are acceptable. Consequently, we may not be able to proceed with our intended business plans. Substantial additional funds will still be required if we are to reach our goals that are outlined in this Report. Obtaining additional financing contains risks, including:

Furthermore, in order to pay amounts owed in connection with lawsuits, settlements, and judgments rendered against us, we may be forced to liquidate assets and/or abandon certain of our business plans. If we are unable to pay such amounts, we may be forced to cease operations and/or seek bankruptcy protection.

The risk factor entitled “Our backlog may not be realized or may not result in revenue or profit.” from the Form 10-K is replaced and superseded by the following:

As of ~~March 31,~~September 30, 2021, we had approximately ~~$3,308,099~~$4,162,256 of remaining performance obligations on our construction contracts, which we also refer to as backlog. We expect to recognize our current backlog as revenue during ~~2021.~~the fourth quarter of 2021 and into 2022. However, some of our contracts may be terminated by our customers on short notice. Reductions in backlog due to cancellation by a customer, or for other reasons, including, but not limited to COVID-19, economic uncertainty associated therewith, and related delays ~~caused by social distancing and “stay-at-home” orders,~~ could significantly reduce the revenue that we actually receive from contracts in our backlog. In the event of a project cancellation, we may be reimbursed for certain costs, but we typically have no contractual right to the total revenue reflected in our backlog. Projects may remain in our backlog for extended periods of time.

Given these factors, our backlog at any point in time may not accurately represent the revenue that we expect to realize during any period, and our backlog as of the end of a fiscal year may not be indicative of the revenue we expect to earn in the following fiscal year. Inability to realize revenue from our backlog could have an adverse effect on our business.

The risk factor entitled “A significant amount of our revenues has historically been due to only a small number of customers, and if we were to lose any material customer, our results of operations could be adversely affected.” from the Form 10-K is replaced and superseded by the following:

A significant amount of our revenues has historically been due to only a small number of customers, and if we were to lose any material customer, our results of operations could be adversely affected.

The Company had ~~four~~one customer representing more than 10% of gross revenue, for a total of 12% of revenue for the nine months ended September 30, 2021. The Company had five customers representing more than 10% of gross revenue, and a combined ~~52%~~56% of revenue for the ~~three~~nine months ended ~~March 31, 2021. The Company had four customers representing more than 10% of gross revenue and combined 84% of revenue for the three months ended March 31,~~September 30, 2020.

As a result, the majority of our revenues ~~has~~have historically been due to only a small number of customers, and we anticipate this trend continuing moving forward. As a result, in the event our customers do not pay us amounts owed, terminate work in progress or we are unable to find new customers moving forward, it could have a materially adverse effect on our results of operations and could force us to curtail or abandon our current business operations.

The risk factor entitled “Nevada law and our articles of incorporation authorize us to issue shares of stock, which shares may cause substantial dilution to our existing stockholders.” from the Form 10-K is replaced and superseded by the following:

We have established preferred stock which can be designated by the Company’s Board of Directors without shareholder approval and the board has established Series A Preferred Stock, which gives the holders majority voting power over the Company.

We have authorized capital stock consisting of 70,000,000 shares of common stock, $0.001 par value per share and 5,000,000 shares of preferred stock, $0.001 par value per share. As of the date of this Report, we have 16,385,000 shares of common stock issued and outstanding and 1,000 shares of Series A Preferred Stock designated and issued and outstanding. The shares of preferred stock of the Company may be issued from time to time in one or more series, each of which shall have a distinctive designation or title as shall be determined by the board of directors of the Company (currently consisting solely of Elijah M) prior to the issuance of any shares thereof. The preferred stock shall have such voting powers, full or limited, or no voting powers, and such preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof as adopted by the board of directors. In May 2020, we designated 1,000 shares of Series A Preferred Stock. The Series A Preferred Stock have the right, voting in aggregate, to vote on all shareholder matters equal to fifty-one percent (51%) of the total vote (the “Super Majority Voting Rights”). For example, if there are 16,385,000 shares of the Company’s common stock issued and outstanding at the time of a shareholder vote, the holders of Series A Preferred Stock, voting separately as a class, will have the right to vote an aggregate of 17,053,776 shares, out of a total number of 33,438,776 shares voting. A total 1,000 shares of Series A Preferred Stock are currently outstanding and held by Elijah May, our sole officer and director, providing him sole voting rights over the Company.

Because the board of directors is able to designate the powers and preferences of the preferred stock without the vote of a majority of the Company’s shareholders, shareholders of the Company will have no control over what designations and preferences the Company’s preferred stock will have. Investors should keep in mind that the Board of Directors has the authority to issue additional shares of common stock and preferred stock, which could cause substantial dilution to our existing stockholders. Additionally, the dilutive effect of any preferred stock, which we may issue may be exacerbated given the fact that such preferred stock may have super majority voting rights (similar to the Series A Preferred Stock) and/or other rights or preferences which could provide the preferred stockholders with voting control over us subsequent to such offering and/or give those holders the power to prevent or cause a change in control. As a result, the issuance of shares of common stock and/or preferred stock may cause the value of our securities to decrease and/or become worthless.

The risk factor entitled “Our executive officer controls a majority of our voting securities and therefore he has the ability to influence matters affecting our stockholders.” from the Form 10-K is replaced and superseded by the following:

Our sole officer and director controls a majority of our voting securities and therefore he has the ability to influence matters affecting our stockholders.

Our sole executive officer and director, Elijah May, beneficially owns approximately 59.1% of the issued and outstanding shares of our common stock and also holds all 1,000 outstanding shares of Series A Preferred Stock which have Super Majority Voting Rights. As a result, he controls approximately 79.9% of all shareholder votes. As a result, he has the ability to influence matters affecting our stockholders and will therefore exercise control in determining the outcome of all corporate transactions or other matters, including the election of directors, mergers, consolidations, the sale of all or substantially all of our assets, and also the power to prevent or cause a change in control. Any investor who purchases shares will be a minority stockholder and as such will have little to no say in the direction of the Company and the election of directors. Additionally, it will be difficult if not impossible for investors to remove our current director, which will mean he will remain in control of who serves as officers of the Company as well as whether any changes are made in the Board of Directors (currently consisting solely of Mr. May). As a potential investor in the Company, you should keep in mind that even if you own shares of the Company’s common stock and wish to vote them at annual or special stockholder meetings, your shares will likely have little effect on the outcome of corporate decisions. Because Mr. May controls the vote on all shareholder matters, investors may find it difficult to replace our management if they disagree with the way our business is being operated. Additionally, the interests of Mr. May, may differ from the interests of the other stockholders and thus result in corporate decisions that are adverse to other stockholders.

There have been no sales of unregistered securities during the quarter ended ~~March 31,~~September 30, 2021 and from the period from ~~April~~July 1, 2021 to the filing date of this report, which have not previously been disclosed in the Company’s ~~Annual~~Quarterly Report on Form ~~10-K.~~10-Q for the quarter ended March 31, 2021 or a Current Report on Form 8-K.

~~None.~~The following information was required to be disclosed in a Current Report on Form 8-K during the period covered by this Form 10-Q, but was inadvertently not timely reported by the Company. Instead of filing such information on a separate Current Report on Form 8-K, we have elected to make the following disclosures in this Quarterly Report on Form 10-Q under Items 1.01 and 2.03 of Form 8-K, as applicable:

On or around November 1, 2021, the Company’s wholly-owned subsidiary, Reliant Custom Homes, Inc., entered into an Extension of Real Estate Note and Lien, with First United Bank and Trust Co. (“First United” and the “Extension”), which extended the Company’s prior construction loan in the amount of $221,000, which has a balance of $0. Pursuant to that agreement, the maturity date of the construction loan was extended until October 2022. There were no other changes to the terms of the loan. Amounts borrowed under the loan bear interest at the rate of 6.25%, are secured by the land on which the Company plans to build a custom home, and are guaranteed by Reliant Pools, Inc., our wholly-owned subsidiary.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information and disclosures regarding the Extension are incorporated by reference into this Item 2.03 in their entirety.

Incorporated by Reference

Exhibit

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Description of Exhibit

Filed/Furnished

Herewith

Form

Exhibit

Filing

Date

File

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Description of Exhibit

Filed/

Furnished

Herewith

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Exhibit

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Number

2.1

Agreement for the Exchange of Common Stock dated May 23, 2014, by and between Reliant Holdings, Inc., Reliant Pools, Inc. and the stockholders of Reliant Pools, Inc.

S-1

2.1

10/27/2016

333-214274

Agreement for the Exchange of Common Stock dated May 23, 2014, by and between Reliant Holdings, Inc., Reliant Pools, Inc. and the stockholders of Reliant Pools, Inc.

S-1

2.1

10/27/2016

333-214274

3.1

Articles of Incorporation as amended and restated

S-1

3.1

10/27/2016

333-214274

Articles of Incorporation as amended and restated

S-1

3.1

10/27/2016

333-214274

3.2

Amended and Restated Bylaws

S-1

3.2

10/27/2016

333-214274

Certificate of Designations of Reliant Holdings, Inc., Establishing the Designations, Preferences, Limitations and Relative Rights of Its Series A Preferred Stock, filed with the Secretary of State of Nevada on June 15, 2021

8-K

3.1

06/17/2021

000-56012

3.3

Amended and Restated Bylaws

S-1

3.2

10/27/2016

333-214274

4.1

Description of Securities of the Registrant

10-K

4.1

3/30/2020

000-56012

Description of Securities of the Registrant

10-K

4.1

3/30/2020

000-56012

10.1

Standard Form of Construction Contract

S-1

10.1

10/27/2016

333-214274

Standard Form of Construction Contract

S-1

10.1

10/27/2016

333-214274

10.2

Voting Agreement, dated as of November 3, 2017, by and among Michael Chavez and Elijah May

8-K

10.1

11/7/2017

333-214274

Voting Agreement, dated as of November 3, 2017, by and among Michael Chavez and Elijah May

8-K

10.1

11/7/2017

333-214274

10.3

Form of Construction Loan Agreement dated April 28, 2020, by and between Reliant Custom Homes, Inc. and First United Bank and Trust Co.

10-Q

10.7

5/19/2020

000-56012

Form of Construction Loan Agreement dated April 28, 2020, by and between Reliant Custom Homes, Inc. and First United Bank and Trust Co.

10-Q

10.7

5/19/2020

000-56012

10.4

Form of Promissory Note in the amount of $221,000, dated April 28, 2020, by Reliant Custom Homes, Inc. in favor of First United Bank and Trust Co.

10-Q

10.8

5/19/2020

000-56012

Form of Promissory Note in the amount of $221,000, dated April 28, 2020, by Reliant Custom Homes, Inc. in favor of First United Bank and Trust Co.

10-Q

10.8

5/19/2020

000-56012

10.5

Form of Commercial Guaranty dated April 28, 2020, by Reliant Holdings, Inc., in favor of First United Bank and Trust Co.

10-Q

10.9

5/19/2020

000-56012

Form of Commercial Guaranty dated April 28, 2020, by Reliant Holdings, Inc., in favor of First United Bank and Trust Co.

10-Q

10.9

5/19/2020

000-56012

10.6

Form of Commercial Guaranty dated April 28, 2020, by Reliant Pools, Inc., in favor of First United Bank and Trust Co.

10-Q

10.10

5/19/2020

000-56012

Form of Commercial Guaranty dated April 28, 2020, by Reliant Pools, Inc., in favor of First United Bank and Trust Co.

10-Q

10.10

5/19/2020

000-56012

10.7

Form of Construction Deed of Trust Form dated April 28, 2020, by Reliant Custom Homes, Inc. in favor of First United Bank and Trust Co.

10-Q

10.11

5/19/2020

000-56012

Form of Construction Deed of Trust Form dated April 28, 2020, by Reliant Custom Homes, Inc. in favor of First United Bank and Trust Co.

10-Q

10.11

5/19/2020

000-56012

10.8

Paycheck Protection Program Promissory Note and Agreement dated May 4, 2020 by and between Wells Fargo Bank N.A. and Reliant Pools, Inc., evidencing the loan of $51,113

10Q

10.12

5/19/2020

000-56012

Paycheck Protection Program Promissory Note and Agreement dated May 4, 2020 by and between Wells Fargo Bank N.A. and Reliant Pools, Inc., evidencing the loan of $51,113

10-Q

10.12

5/19/2020

000-56012

10.9

Lock-Up Agreement dated January 27, 2021, between Reliant Holdings, Inc. and Michael Chavez

10-K

10.9

3/31/2021

000-56012

Lock-Up Agreement dated January 27, 2021, between Reliant Holdings, Inc. and Michael Chavez

10-K

10.9

3/31/2021

000-56012

10.10

Reliant Holdings, Inc. 2021 Equity Incentive Plan

8-K

10.2

6/17/2021

000-56012

10.11

Form of 2021 Equity Incentive Plan Option Award Grant Agreement (included with this registration statement)

S-8

4.1

8/3/2021

333-258392

10.12

Form of 2021 Equity Incentive Plan Restricted Stock Grant Agreement (included with this registration statement)

S-8

4.2

8/3/2021

333-258392

10.13

Extension of Real Estate Note and Lien dated April 26, 2021, by and between Reliant Custom Homes, Inc. and Frist United Bank and Trust Co.

10-Q

10.13

8/16/2021

000-56012

14.1

Code of Ethics and Code of Conduct

S-1

14.1

10/27/2016

333-214274

Code of Ethics and Code of Conduct

S-1

14.1

10/27/2016

333-214274

16.1

Letter to Securities and Exchange Commission from LBB & Associates Ltd., LLP, dated March 2, 2020

8-K

16.1

3/3/2020

000-56012

Letter to Securities and Exchange Commission from LBB & Associates Ltd., LLP, dated March 2, 2020

8-K

16.1

3/3/2020

000-56012

31.1*

Certification of Principal Executive and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act

☒

Certification of Principal Executive and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act

☒

32.1**

Certification of Principal Executive and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act

☒

Certification of Principal Executive and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act

☒

101.INS*

XBRL Instance Document

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Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

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101.SCH*

XBRL Taxonomy Extension Schema Document

☒

Inline XBRL Taxonomy Extension Schema Document

☒

101.CAL*

XBRL Taxonomy Extension Calculation Linkbase Document

☒

Inline XBRL Taxonomy Extension Calculation Linkbase Document

☒

101.DEF*

XBRL Taxonomy Extension Definition Linkbase Document

☒

Inline XBRL Taxonomy Extension Definition Linkbase Document

☒

101.LAB*

XBRL Taxonomy Extension Label Linkbase Document

☒

Inline XBRL Taxonomy Extension Label Linkbase Document

☒

101.PRE*

XBRL Taxonomy Extension Presentation Linkbase Document

☒

101.LAB*

Inline XBRL Taxonomy Extension Presentation Linkbase Document

☒

104*

Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set

☒

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned ~~hereunto~~thereunto duly authorized.

Nevada		47-2200506
(State or other jurisdiction of		(I.R.S. Employer Identification No.)
incorporation or organization)		~~Identification No.)~~

12343 Hymeadow Drive, Suite 3-A Austin, Texas		78750
(Address of principal executive offices)		(Zip Code)

		Page
PART I – FINANCIAL INFORMATION

Cautionary Statement Regarding Forward-Looking Information		3

Item 1.	Financial Statements	4

	Consolidated Balance Sheets (unaudited)	4

	Consolidated Statements of Operations (unaudited)	5

	Consolidated Statements of Stockholders’ Deficit (unaudited)	6

	Consolidated Statements of Cash Flows (unaudited)	7

	Notes to the Consolidated Financial Statements (unaudited)	8

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1314

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23

Item 4.	Controls and Procedures	23

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	24

Item 1A.	Risk Factors	24

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2728

Item 3.	Defaults Upon Senior Securities	2728

Item 4.	Mine Safety Disclosures	2728

Item 5.	Other Information	2729

Item 6.	Exhibits	2830

	●	the need for additional funding;
	●	our lack of a significant operating history;
	●	the fact that our sole officer and director has significant control over our voting stock;
	●	the loss of key personnel or failure to attract, integrate and retain additional personnel;
	●	corporate governance risks;
	●	economic downturns;
	●	the level of competition in our industry and our ability to compete;
	●	our ability to respond to changes in our industry;
	●	our ability to protect our intellectual property and not infringe on others’ intellectual property;
	●	our ability to scale our business;
	●	our ability to maintain supplier relationships;
	●	our ability to obtain and retain customers;
	●	our ability to execute our business strategy in a very competitive environment;
	●	trends in and the market for recreational pools and services;
	●	lack of insurance policies;
	●	dependence on a small number of customers;
	●	changes in laws and regulations;
	●	the market for our common stock;
	●	our ability to effectively manage our growth;
	●	dilution to existing stockholders;
	●	costs and expenses associated with being a public company;
	●	client lawsuits, damages, judgments and settlements required to be paid in connection therewith and the effects thereof on our reputation;
	●	continued health risks, economic slowdowns and rescissions and other negative outcomes caused by COVID-19 and governmental responses thereto;
	●	economic downturns both in the United States and globally;
	●	risk of increased regulation of our operations; and
	●	other risk factors included under “~~Risk Factors~~”“Risk Factors” below and under “~~Item~~“Item 1A. Risk ~~Factors~~”Factors” in our latest Annual Report on Form 10-K.

	March 31,			December 31,
	2021			2020
ASSETS
Current Assets
Cash	$	321,291		$	192,567
Accounts receivable		13,740			5,119
Federal income tax receivable		416			978
House and real estate inventory		34,233			33,948
Contract assets		4,399			69,510
Total current assets		374,079			302,122

Equipment, net of accumulated depreciation of $45,846 and $43,506 as of March 31, 2021 and December 31, 2020, respectively		35,882			38,222

Total Assets	$	409,961		$	340,344

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and accrued liabilities	$	132,442		$	139,011
Contract liabilities		414,783			267,156
Current portion of note payable		6,987			6,875

Total current liabilities		554,212			413,042

Long-term note payable, net of current portion		70,447			73,308

Total Liabilities		624,659			486,350

Commitments

Stockholders’ Deficit
Preferred stock, 5,000,000 shares authorized, $0.001 par value, 0 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively		-			-
Common stock, 70,000,000 shares authorized, $0.001 par value, 16,385,000 and 14,785,000 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively		16,385			14,785
Additional paid-in capital		384,232			48,832
Accumulated deficit		(615,315	)		(209,623	)

Total Stockholders’ Deficit		(214,698	)		(146,006	)

Total Liabilities and Stockholders’ Deficit	$	409,961		$	340,344

	September 30,			December 31,
	2021			2020
ASSETS
Current Assets
Cash	$	280,640		$	192,567
Accounts receivable		0			5,119
Federal income tax receivable		416			978
House and real estate inventory		45,471			33,948
Contract assets		21,370			69,510

Total current assets		347,897			302,122

Equipment, net of accumulated depreciation of $50,527 and $43,506 as of September 30, 2021 and December 31, 2020, respectively		31,201			38,222

Total Assets	$	379,098		$	340,344

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable and accrued liabilities	$	107,429		$	139,011
Contract liabilities		366,610			267,156
Current portion of note payable		7,156			6,875

Total current liabilities		481,195			413,042

Long–term note payable, net of current portion		15,012			73,308

Total Liabilities		496,207			486,350

Commitments and Contingencies

Stockholders’ Deficit
Preferred stock, 5,000,000 shares authorized, $0.001 par value, 0 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively		0			0
Preferred stock Series A, 1,000 shares authorized, $0.001 par value, 1,000 and 0 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively		1			0
Common stock, 70,000,000 shares authorized, $0.001 par value, 16,385,000 and 14,785,000 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively		16,385			14,785
Additional paid–in capital		396,564			48,832
Accumulated deficit		(530,059	)		(209,623	)

Total Stockholders' Deficit		(117,109	)		(146,006	)

Total Liabilities and Stockholders' Deficit	$	379,098		$	340,344

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth	☒

	For the three months ended
	March 31,
	2021			2020

Revenue	$	583,061		$	492,307
Cost of goods sold		(472,505	)		(335,183	)
Gross margin		110,556			157,124

Operating expenses
General and administrative		515,845			488,865

Total operating expenses		(515,845	)		(488,865	)

Loss from operations		(405,289	)		(331,741	)

Other income (expense)
Interest income		-			22
Interest expense		(403	)		(119	)

Total other income (expense)		(403	)		(97	)

Loss before income taxes		(405,692	)		(331,838	)

Provision for income tax		-			-

Net loss	$	(405,692	)	$	(331,838	)

Net loss per share - basic and diluted	$	(0.03	)	$	(0.02	)

Weighted average common shares outstanding		15,717,584			14,585,000

	For the Three Months ended						For the Nine Months ended
	September 30,						September 30,
	2021			2020			2021			2020

Revenue	$	616,470		$	555,073		$	2,006,994		$	1,381,051
Cost of goods sold		(523,719	)		(407,229	)		(1,495,084	)		(974,228	)
Gross margin		92,751			147,844			511,910			406,823

Operating expenses
General and administrative		149,507			164,913			883,242			802,262

Total operating expenses		(149,507	)		(164,913	)		(883,242	)		(802,262	)

Income (loss) from operations		(56,756	)		(17,069	)		(371,332	)		(395,439	)

Other income (expense)
Interest income		43			0			49			22
Interest expense		(237	)		(320	)		(730	)		(862	)
Gain on forgiveness of debt		0			0			51,577			0

Total other income (expense)		(194	)		(320	)		50,896			(840	)

Loss before income taxes		(56,950	)		(17,389	)		(320,436	)		(396,279	)

Provision for income tax		0			0			0			0

Net loss	$	(56,950	)	$	(17,389	)	$	(320,436	)	$	(396,279	)

Net loss per share – basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.02	)	$	(0.03	)

Weighted average common shares outstanding		16,385,000			14,585,000			16,232,059			14,585,000

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

	March 31, 2021			December 31, 2020
Costs and estimated earnings in excess of billings on uncompleted contracts	$	4,399		$	69,510
Billings in excess of costs and estimated earnings on uncompleted contracts		(414,783	)		(267,156	)
Contract liabilities	$	(410,384	)	$	(197,646	)

	March 31, 2021			December 31, 2020
Term note with a bank secured by car, payable in monthly installments of $660, including interest at 3.99% through February 27, 2025	$	26,321		$	29,070

Paycheck Protection Program		51,113			51,113

Total long-term debt		77,434			80,183
Less: current portion		(6,987	)		(6,875	)
Long-term debt net of current portion	$	70,447		$	73,308

	●	“~~Exchange Act” refers to the Securities Exchange Act of 1934, as amended;~~
	●	“~~SEC” or the “Commission” refers to the United States Securities and Exchange Commission; and~~
	●	“~~Securities Act” refers to the Securities Act of 1933, as amended.~~

	●	~~Overview~~~~. Discussion of our business and overall analysis of financial and other highlights affecting us, to provide context for the remainder of MD&A.~~

	●	~~Plan of Operations~~.~~A description of our plan of operations for the next 12 months including required funding.~~

	●	~~Results of Operations~~~~. An analysis of our financial results comparing the three months ended March 31, 2021 and 2020.~~

	●	~~Liquidity and Capital Resources~~~~. An analysis of changes in our consolidated balance sheets and cash flows and discussion of our financial condition.~~

	●	~~Critical Accounting Policies~~~~. Accounting estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.~~

	For the Three		For the Three
	Months Ended		Months Ended		Increase			Percentage
Cost of Goods Sold Expense	March 31, 2021		March 31, 2020		/(Decrease)			Change
Cost of decking	$	49,745	$	57,416	$	(7,671	)		(13	%)
Plaster used in the construction of pools		32,859		35,077		(2,218	)		(6	%)
Gunite used in the construction of pools		48,180		36,479		11,701			32	%
Pool equipment used to filter and circulate the water used in our pools		57,235		45,690		11,545			25	%
Masonry, stone and tile installed in and around our pools and coping expenses associated therewith		70,422		49,788		20,634			41	%
Excavation and steel expenses		82,768		22,446		60,322			269	%
Other, including labor		131,296		88,287		43,009			49	%
Total	$	472,505	$	335,183	$	137,322			41	%

	September 30, 2021			December 31, 2020
Costs and estimated earnings in excess of billings on uncompleted contracts	$	21,370		$	69,510
Billings in excess of costs and estimated earnings on uncompleted contracts		(366,610	)		(267,156	)
Contract liabilities	$	(345,240	)	$	(197,646	)

	●	“Exchange Act” refers to the Securities Exchange Act of 1934, as amended;
	●	“SEC” or the “Commission” refers to the United States Securities and Exchange Commission; and
	●	“Securities Act” refers to the Securities Act of 1933, as amended.

	●	Overview. Discussion of our business and overall analysis of financial and other highlights affecting us, to provide context for the remainder of MD&A.

	●	Plan of Operations.A description of our plan of operations for the next 12 months including required funding.

	●	Results of Operations. An analysis of our financial results comparing the three and nine months ended September 30, 2021 and 2020.

	●	Liquidity and Capital Resources. An analysis of changes in our consolidated balance sheets and cash flows and discussion of our financial condition.

	●	Critical Accounting Policies and Estimates. Accounting estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.

	For the Nine		For the Nine
	Months Ended		Months Ended
Cost of Goods Sold Expense	September 30, 2021		September 30, 2020		Increase / (Decrease)		Percentage Change
Cost of decking	$	186,555	$	127,951	$	58,604		45.8	%
Plaster used in the construction of pools		104,709		78,388		26,321		33.6	%
Gunite used in the construction of pools		165,573		106,903		58,670		54.9	%
Pool equipment used to filter and circulate the water used in our pools		251,803		151,000		100,803		66.8	%
Masonry, stone and tile installed in and around our pools and coping expenses associated therewith		174,379		130,436		43,943		33.7	%
Excavation and steel expenses		184,039		145,027		39,012		26.9	%
Other, including labor		428,026		234,523		193,503		82.5	%
Total	$	1,495,084	$	974,228	$	520,856		53.5	%

	●	additional equity financing may not be available to us on satisfactory terms and any equity we are able to issue could lead to dilution for current stockholders;

	●	loans or other debt instruments may have terms and/or conditions, such as interest rate, restrictive covenants and control or revocation provisions, which are not acceptable to management or our sole director;

	●	the current environment in capital markets combined with our capital constraints may prevent us from being able to obtain adequate debt financing; and

	●	if we fail to obtain required additional financing to grow our business, we would need to delay or scale back our business plan, reduce our operating costs, or reduce our headcount, each of which would have a material adverse effect on our business, future prospects, and financial condition.

	RELIANT HOLDINGS, INC.

Date: ~~May 21,~~November 15, 2021	By:	/s/ Elijah May
		Elijah May
		~~Elijah May~~Chief Executive Officer and President
		~~Chief~~(Principal Executive Officer and ~~President~~Principal Financial/Accounting Officer)
		~~(Principal Executive Officer and Principal Financial/Accounting Officer)~~