Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 15, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Reliant Holdings, Inc. | |
Entity Central Index Key | 0001682265 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 16,385,000 | |
Document Quarterly Report | true | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Entity File Number | 000-56012 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 47-2200506 | |
Entity Address Address Line 1 | 12343 Hymeadow Drive | |
Entity Address Address Line 2 | Suite 3-A | |
Entity Address City Or Town | Austin | |
Entity Address State Or Province | TX | |
Entity Address Postal Zip Code | 78750 | |
City Area Code | 512 | |
Local Phone Number | 407-2623 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
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 |
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 |
Stockholders' Deficit | ||
Preferred stock,Value | 0 | 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 |
Preferred Stock Series A [Member] | ||
Stockholders' Deficit | ||
Preferred stock,Value | $ 1 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Equipment, accumulated depreciation | $ 50,527 | $ 43,506 |
Stockholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 16,385,000 | 14,785,000 |
Common stock, shares outstanding | 16,385,000 | 14,785,000 |
Preferred Stock Series A [Member] | ||
Stockholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares outstanding | 1,000 | 0 |
Preferred stock, shares issued | 1,000 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consolidated Statements of Operations (unaudited) | ||||
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 | $ 0 | $ (0.02) | $ (0.03) |
Weighted average common shares outstanding | 16,385,000 | 14,585,000 | 16,232,059 | 14,585,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Deficit (unaudited) - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance, shares at Dec. 31, 2019 | 14,585,000 | ||||
Balance, amount at Dec. 31, 2019 | $ 154,395 | $ 0 | $ 14,585 | $ 43,365 | $ 96,445 |
Net loss | (331,838) | 0 | $ 0 | 0 | (331,838) |
Balance, shares at Mar. 31, 2020 | 14,585,000 | ||||
Balance, amount at Mar. 31, 2020 | (177,443) | 0 | $ 14,585 | 43,365 | (235,393) |
Balance, shares at Dec. 31, 2019 | 14,585,000 | ||||
Balance, amount at Dec. 31, 2019 | 154,395 | 0 | $ 14,585 | 43,365 | 96,445 |
Net loss | (396,279) | ||||
Balance, shares at Sep. 30, 2020 | 14,585,000 | ||||
Balance, amount at Sep. 30, 2020 | (241,884) | 0 | $ 14,585 | 43,365 | (299,834) |
Balance, shares at Mar. 31, 2020 | 14,585,000 | ||||
Balance, amount at Mar. 31, 2020 | (177,443) | 0 | $ 14,585 | 43,365 | (235,393) |
Net loss | (47,052) | 0 | $ 0 | 0 | (47,052) |
Balance, shares at Jun. 30, 2020 | 14,585,000 | ||||
Balance, amount at Jun. 30, 2020 | (224,495) | 0 | $ 14,585 | 43,365 | (282,445) |
Net loss | (17,389) | 0 | $ 0 | 0 | (17,389) |
Balance, shares at Sep. 30, 2020 | 14,585,000 | ||||
Balance, amount at Sep. 30, 2020 | (241,884) | 0 | $ 14,585 | 43,365 | (299,834) |
Balance, shares at Dec. 31, 2020 | 14,785,000 | ||||
Balance, amount at Dec. 31, 2020 | (146,006) | 0 | $ 14,785 | 48,832 | (209,623) |
Net loss | (405,692) | 0 | $ 0 | 0 | (405,692) |
Stock-based compensation, shares | 1,600,000 | ||||
Stock-based compensation, amount | 337,000 | 0 | $ 1,600 | 335,400 | 0 |
Balance, shares at Mar. 31, 2021 | 16,385,000 | ||||
Balance, amount at Mar. 31, 2021 | (214,698) | 0 | $ 16,385 | 384,232 | (615,315) |
Balance, shares at Dec. 31, 2020 | 14,785,000 | ||||
Balance, amount at Dec. 31, 2020 | (146,006) | $ 0 | $ 14,785 | 48,832 | (209,623) |
Net loss | (320,436) | ||||
Balance, shares at Sep. 30, 2021 | 1,000 | 16,385,000 | |||
Balance, amount at Sep. 30, 2021 | (117,109) | $ 1 | $ 16,385 | 396,564 | (530,059) |
Balance, shares at Mar. 31, 2021 | 16,385,000 | ||||
Balance, amount at Mar. 31, 2021 | (214,698) | 0 | $ 16,385 | 384,232 | (615,315) |
Net loss | 142,206 | 0 | 0 | 0 | 142,206 |
Stock-based compensation, amount | 11,333 | $ 0 | 0 | 11,333 | 0 |
Preferred Shares issued for Compensation, shares | 1,000 | ||||
Preferred Shares issued for Compensation, amount | 1,000 | $ 1 | $ 0 | 999 | 0 |
Balance, shares at Jun. 30, 2021 | 1,000 | 16,385,000 | |||
Balance, amount at Jun. 30, 2021 | (60,159) | $ 1 | $ 16,385 | 396,564 | (473,109) |
Net loss | (56,950) | $ 0 | $ 0 | 0 | (56,950) |
Balance, shares at Sep. 30, 2021 | 1,000 | 16,385,000 | |||
Balance, amount at Sep. 30, 2021 | $ (117,109) | $ 1 | $ 16,385 | $ 396,564 | $ (530,059) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities | ||
Net loss | $ (320,436) | $ (396,279) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock-based compensation | 349,333 | 0 |
Depreciation | 7,021 | 11,636 |
Bad debt expense | 3,000 | 0 |
Gain on forgiveness of debt | (51,577) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,119 | 0 |
Contract assets | 48,140 | 0 |
House and real estate inventory | (11,523) | (16,024) |
Prepaid and other current assets | 562 | 0 |
Contract liabilities | 99,454 | 178,527 |
Accounts payable and accrued liabilities | (31,118) | 111,484 |
Net cash provided by (used in) operating activities | 94,975 | (110,656) |
Investing Activities | ||
Purchase of property and equipment | 0 | (11,000) |
Net cash used in financing activities | 0 | (11,000) |
Financing Activities | ||
Proceeds from notes payable | 0 | 51,113 |
Payments on note payable | (6,902) | (5,055) |
Net cash provided by (used in) financing activities | (6,902) | 46,058 |
Net change in cash | 88,073 | (75,598) |
Cash - beginning of period | 192,567 | 280,680 |
Cash - end of period | 280,640 | 205,082 |
Supplemental Disclosures | ||
Interest paid | 730 | 783 |
Income taxes paid | 0 | 0 |
Non-cash Disclosures | ||
Purchase of equipment with note payable | $ 0 | $ 35,802 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
The Company and Summary of Significant Accounting Policies | |
Note 1. The Company and Summary of Significant Accounting Policies | Note 1. The Company and Summary of Significant Accounting Policies The Company Reliant Holdings, Inc. (the “ Company Reliant Pools Basis of Presentation The financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“ US GAAP The consolidated financial statements and related disclosures as of September 30, 2021 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“ SEC Princi les of Consolidation 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. Going Concern 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 nine months ended 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. Revenue Recognition On January 1, 2018, we adopted Financial Accounting Standards Board (“ FASB ASC new revenue standard Revenue is recognized based on the following five step model: - Identification of the contract with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognition of revenue when, or as, the Company satisfies a performance obligation All of the Company’s revenue is currently generated from the design and installation of swimming pools. As such no further disaggregation of revenue information is provided. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Performance Obligations Satisfied Over Time 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. Performance Obligations Satisfied at a Point in Time 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. Backlog On September 30, 2021, we had approximately $4,162,256 of remaining performance obligations on our construction contracts, which we also refer to as backlog. We expect to recognize our backlog as revenue during the fourth quarter of 2021 and during 2022. Contract Estimates Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, and the performance of subcontractors. Variable Consideration Transaction 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 adjustments on any one contract were material to our consolidated financial statements for the nine months ended September 30, 2021 and 2020. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) on the consolidated balance sheet. On our construction contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., biweekly or monthly) or upon achievement of contractual milestones. Generally, billing occurs prior to revenue recognition, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. Home sale revenues Land sale revenues Income Taxes 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, is not expected to be realized. Loss Per Share In accordance with accounting guidance now codified as ASC Topic 260, “ Earnings (Loss) per Share,” Recent Accountin Pronouncements The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements. COVID-19 A novel strain of coronavirus (“ COVID-19 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2021 | |
Accounts Receivable | |
Note 2. Accounts Receivable | Note 2. Accounts Receivable Accounts receivable consisted of the following: September 30, December 31, 2021 2020 Contract receivables $ 3,000 $ 5,119 Less: Allowance for doubtful accounts (3,000 ) — Accounts receivable, net $ — $ 5,119 The Company recognized $3,000 and $0 of bad debt expense during the nine months ended September 30, 2021 and 2020, respectively. |
Contracts in Process
Contracts in Process | 9 Months Ended |
Sep. 30, 2021 | |
Contracts in Process | |
Note 3. Contracts in Process | Note 3. Contracts in Process The net asset (liability) position for contracts in process consisted of the following: September 30, December 31, 2021 2020 Costs on uncompleted contracts $ 471,030 $ 441,589 Estimated earnings 225,332 217,499 696,362 659,088 Less: Progress billings 1,041,602 856,734 Contract liabilities, net $ (345,240 ) $ (197,646 ) The net asset (liability) position for contracts in process is included in the accompanying consolidated balance sheets as follows: 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 ) |
Concentration of Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2021 | |
Concentration of Risk | |
Note 4. Concentration of Risk | Note 4. Concentration of Risk 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. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity | |
Note 5. Equity | Note 5. Equity 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Note 6. Commitments and Contingencies | Note 6. Commitments and Contingencies 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. 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 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. |
Note Payable
Note Payable | 9 Months Ended |
Sep. 30, 2021 | |
Note Payable | |
Note 7. Note Payable | September 30, 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 $ 22,168 $ 29,070 Paycheck Protection Program — 51,113 Total long-term debt 22,168 80,183 Less: current portion (7,156 ) (6,875 ) Long-term debt net of current portion $ 15,012 $ 73,308 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 Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
The Company and Summary of Significant Accounting Policies | |
The Company | Reliant Holdings, Inc. (the “ Company Reliant Pools |
Basis of Presentation | The financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“ US GAAP The consolidated financial statements and related disclosures as of September 30, 2021 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“ SEC |
Principles of Consolidation | 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. |
Going Concern | 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 nine months ended 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. |
Revenue Recognition | On January 1, 2018, we adopted Financial Accounting Standards Board (“ FASB ASC new revenue standard Revenue is recognized based on the following five step model: - Identification of the contract with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognition of revenue when, or as, the Company satisfies a performance obligation All of the Company’s revenue is currently generated from the design and installation of swimming pools. As such no further disaggregation of revenue information is provided. |
Performance Obligations | A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Performance Obligations Satisfied Over Time 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. Performance Obligations Satisfied at a Point in Time 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. Backlog On September 30, 2021, we had approximately $4,162,256 of remaining performance obligations on our construction contracts, which we also refer to as backlog. We expect to recognize our backlog as revenue during the fourth quarter of 2021 and during 2022. |
Contract Estimates | Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, and the performance of subcontractors. Variable Consideration Transaction 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 adjustments on any one contract were material to our consolidated financial statements for the nine months ended September 30, 2021 and 2020. |
Contract Balances | The timing of revenue recognition, billings and cash collections results in billed accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) on the consolidated balance sheet. On our construction contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., biweekly or monthly) or upon achievement of contractual milestones. Generally, billing occurs prior to revenue recognition, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. Home sale revenues Land sale revenues |
Income Taxes | 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, is not expected to be realized. |
Loss Per Share | In accordance with accounting guidance now codified as ASC Topic 260, “ Earnings (Loss) per Share,” |
Recent Accounting Pronouncements | The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements. |
COVID-19 | A novel strain of coronavirus (“ COVID-19 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounts Receivable | |
Schedule of accounts receivable | September 30, December 31, 2021 2020 Contract receivables $ 3,000 $ 5,119 Less: Allowance for doubtful accounts (3,000 ) — Accounts receivable, net $ — $ 5,119 |
Contracts in Process (Tables)
Contracts in Process (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Contracts in Process | |
Schedule of net asset (liability) position for contracts in process | September 30, December 31, 2021 2020 Costs on uncompleted contracts $ 471,030 $ 441,589 Estimated earnings 225,332 217,499 696,362 659,088 Less: Progress billings 1,041,602 856,734 Contract liabilities, net $ (345,240 ) $ (197,646 ) |
Schedule for contracts in process | 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 ) |
Note Payable (Tables)
Note Payable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Note Payable | |
Schedule of long term debt | September 30, 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 $ 22,168 $ 29,070 Paycheck Protection Program — 51,113 Total long-term debt 22,168 80,183 Less: current portion (7,156 ) (6,875 ) Long-term debt net of current portion $ 15,012 $ 73,308 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
The Company and Summary of Significant Accounting Policies (Details Narrative) | |||
Contract liabilities, include customer deposit liabilities | $ 0 | $ 0 | |
Construction contracts description | The majority of our revenue is derived from construction contracts and projects that typically span between 4 to 12 months. | ||
Dilutive shares outstanding | 0 | 0 | |
Remaining performance obligations | $ 4,162,256 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Receivable | ||
Contract receivables | $ 3,000 | $ 5,119 |
Less: Allowance for doubtful accounts | (3,000) | 0 |
Accounts receivable, net | $ 0 | $ 5,119 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts Receivable | ||
Bad debt expense recognized | $ 3,000 | $ 0 |
Contracts in Process (Details)
Contracts in Process (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Contracts in Process (Details) | ||
Costs on uncompleted contracts | $ 471,030 | $ 441,589 |
Estimated earnings | 225,332 | 217,499 |
Total | 696,362 | 659,088 |
Less: Progress billings | 1,041,602 | 856,734 |
Contract liabilities, net | $ (345,240) | $ (197,646) |
Contracts in Process (Details 1
Contracts in Process (Details 1) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Contracts in Process (Details) | ||
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) |
Concentration of Risk (Details
Concentration of Risk (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | $ 616,470 | $ 555,073 | $ 2,006,994 | $ 1,381,051 |
Gross Revenue [Member] | ||||
Combined revenue | 12.00% | 56.00% | ||
Gross revenue percent | 10.00% | 10.00% |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | Dec. 04, 2020 | Jun. 15, 2021 | Jan. 27, 2021 | Jun. 30, 2021 | Sep. 30, 2021 |
Elijah May [Member] | Series A Preferred Stock [Member] | |||||
Share price (per share) | $ 1 | ||||
Preferred stock designated shares | 1,000 | ||||
Preferred stock voting description | Such shares of Series A Preferred Stock vote in aggregate fifty-one percent (51%) of the total vote on all shareholder matters, voting separately as a class. | ||||
Michael Chavez [Member] | |||||
Recognized expense | $ 320,000 | ||||
Common stock shares held by related party | 700,000 | ||||
Investors [Member] | |||||
Recognized expense | $ 28,333 | ||||
Conversion of stock, shares | 200,000 | ||||
Conversion of stock, amount | $ 34,000 | ||||
Voting Agreement [Member] | Joel Hefiner [Member] | Elijah May [Member] | |||||
Common stock shares held by related party | 700,000 | ||||
Share price (per share) | $ 0.20 | ||||
Sale of stock, shares | 200,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | Dec. 21, 2018 | Sep. 30, 2021 | Sep. 30, 2020 |
Lease expense | $ 17,530 | $ 17,415 | |
Reliant Pools [Member] | |||
Name of defendant | Brian Moats | ||
Settlement agreement terms, description | 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. | ||
Minimum [Member] | Reliant Pools [Member] | |||
Damages sought, value | $ 100,000 | ||
Maximum [Member] | Reliant Pools [Member] | |||
Damages sought, value | $ 200,000 | ||
Formal Settlement Agreement [Member] | Mr Moats [Member] | |||
Accrued liabilities | 35,000 | ||
Cash payment for settlement | $ 45,000 | ||
Austin Texas [Member] | |||
Area of office space leased | 1,000 | ||
October 1, 2020 through September 30, 2021 [Member] | |||
Lease expense per month | $ 1,850 |
Note Payable (Details)
Note Payable (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Note Payable | ||
Term note with a bank secured by car, payable in monthly installments of $660, including interest at 3.99% per annum, through February 27, 2025 | $ 22,168 | $ 29,070 |
Paycheck Protection Program | 0 | 51,113 |
Total long term debt | 22,168 | 80,183 |
Less: current portion | (7,156) | (6,875) |
Long-term debt net of current portion | $ 15,012 | $ 73,308 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | May 07, 2020 | Apr. 28, 2020 |
Loan | $ 221,000 | |
Loan interest rate | 6.25% | |
Paycheck Protection Program [Member] | ||
Net proceeds | $ 51,113 | |
Repayment interest rate | 1.00% |