Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 21, 2022 | Jun. 30, 2021 | |
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Amendment Description | Throughout this Report, references to the “Company,” “HCDI,” “we,” “us,” and “our” refer to Harbor Custom Development, Inc. and its consolidated subsidiaries, unless the context requires otherwise. | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-39266 | ||
Entity Registrant Name | Harbor Custom Development, Inc. | ||
Entity Central Index Key | 0001784567 | ||
Entity Tax Identification Number | 46-4827436 | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Address, Address Line One | 11505 Burnham Dr. | ||
Entity Address, Address Line Two | Suite 301 | ||
Entity Address, City or Town | Gig Harbor | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98332 | ||
City Area Code | (253) | ||
Local Phone Number | 649-0636 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Elected Not To Use the Extended Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 39.8 | ||
Entity Common Stock, Shares Outstanding | 13,206,165 | ||
Documents Incorporated by Reference | None | ||
Auditor Name | Rosenberg Rich Baker Berman P.A | ||
Auditor Firm ID | 89 | ||
Auditor Location | Somerset, New Jersey | ||
Common Stock [Member] | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | HCDI | ||
Security Exchange Name | NASDAQ | ||
Series A Cumulative Convertible Preferred Stock [Member] | |||
Title of 12(b) Security | Series A Cumulative Convertible Preferred Stock | ||
Trading Symbol | HCDIP | ||
Security Exchange Name | NASDAQ | ||
Warrants [Member] | |||
Title of 12(b) Security | Warrants | ||
Trading Symbol | HCDIW | ||
Security Exchange Name | NASDAQ | ||
Warrant One [Member] | |||
Title of 12(b) Security | Warrants | ||
Trading Symbol | HCDIZ | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash | $ 25,629,200 | $ 2,396,500 |
Restricted Cash | 597,600 | |
Accounts Receivable, net | 1,113,500 | 78,200 |
Contract Assets, net | 2,167,200 | |
Notes Receivable | 2,000,000 | |
Prepaid Expense | 2,778,100 | 1,658,000 |
Real Estate | 122,136,100 | 20,370,300 |
Property, Plant and Equipment, net | 9,199,700 | 8,176,000 |
Right of Use Assets | 3,429,700 | 873,800 |
Deferred Tax Assets | 649,000 | |
Deferred Offering Costs | 65,100 | |
TOTAL ASSETS | 169,700,100 | 33,617,900 |
LIABILITIES | ||
Accounts Payable and Accrued Expenses | 10,662,800 | 2,700,000 |
Dividends Payable | 670,900 | |
Deferred Revenue | 44,800 | 896,300 |
Equipment Loans | 5,268,500 | 5,595,500 |
Note Payable D&O Insurance | 903,800 | 741,200 |
Note Payable PPP | 19,300 | |
Finance Leases | 543,400 | 999,400 |
Construction Loans, net of Debt Discount of $4.4 million and $0.5 million respectively | 34,957,100 | 9,590,100 |
Construction Loans - Related Parties, net of Debt Discount of $1.1 million and $0.7 million respectively | 13,426,600 | 5,819,700 |
Right of Use Liabilities | 3,484,400 | 841,700 |
TOTAL LIABILITIES | 69,962,300 | 27,203,200 |
COMMITMENTS AND CONTINGENCIES - SEE NOTE 14 | ||
STOCKHOLDERS’ EQUITY | ||
Preferred Stock, No Par 10,000,000 shares authorized and 4,016,955 issued and outstanding at December 31, 2021 and 0 issued and outstanding at December 31, 2020 | 66,507,500 | |
Common Stock, No Par 50,000,000 shares authorized and 13,155,342 issued and outstanding at December 31, 2021 and 5,636,548 issued and outstanding at December 31, 2020 | 32,122,700 | 11,956,900 |
Additional Paid In Capital | 752,700 | 234,800 |
Retained Earnings (Accumulated Deficit) | 1,646,500 | (4,487,100) |
Total Stockholders’ Equity | 101,029,400 | 7,704,600 |
Non-Controlling Interest | (1,291,600) | (1,289,900) |
TOTAL STOCKHOLDERS’ EQUITY | 99,737,800 | 6,414,700 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 169,700,100 | $ 33,617,900 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Construction Loans, net of Debt Discount | $ 4.4 | $ 0.5 |
Construction Loans - Related Parties, net of Debt Discount | $ 1.1 | $ 0.7 |
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 4,016,955 | 0 |
Preferred stock, shares outstanding | 4,016,955 | 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 13,155,342 | 5,636,548 |
Common stock, shares outstanding | 13,155,342 | 5,636,548 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 72,352,700 | $ 50,397,000 |
Cost of Sales | 50,419,400 | 48,393,800 |
Gross Profit | 21,933,300 | 2,003,200 |
Operating Expenses | 11,151,600 | 5,493,900 |
Operating Income (Loss) | 10,781,700 | (3,490,700) |
Other Income (Expense) | ||
Loss on Sale of Equipment | (35,900) | (267,700) |
Forgiveness of Debt PPP Loan | 10,000 | 562,300 |
Other Income | 146,000 | 4,000 |
Other Expense | (28,800) | (70,300) |
Interest Expense | (249,300) | (382,900) |
Total Other Income (Expense) | (158,000) | (154,600) |
Income (Loss) Before Income Tax | 10,623,700 | (3,645,300) |
Income Tax Expense | 1,766,900 | 116,800 |
Net Income (Loss) | 8,856,800 | (3,762,100) |
Net Loss Attributable to Non-controlling interests | (1,700) | (229,300) |
Preferred Dividends | (2,724,900) | |
Net Income (Loss) Attributable to Common Stockholders | $ 6,133,600 | $ (3,532,800) |
Earnings (Loss) Per Share - Basic | $ 0.43 | $ (0.84) |
Earnings (Loss) Per Share - Diluted | $ 0.41 | $ (0.84) |
Weighted Average Common Shares Outstanding - Basic | 14,336,748 | 4,214,418 |
Weighted Average Common Shares Outstanding - Diluted | 21,793,582 | 4,214,418 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income (Loss) | $ 8,856,800 | $ (3,762,100) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Depreciation | 1,084,200 | 619,800 |
Amortization of right of use assets | 387,900 | 258,900 |
Forgiveness on PPP loan | (10,000) | (562,300) |
Loss on sale of equipment | 35,900 | 267,700 |
Stock compensation | 499,900 | 115,700 |
Net change in assets and liabilities: | ||
Accounts receivable | (1,035,300) | (66,400) |
Contract assets | (2,167,200) | |
Prepaid expenses | 290,300 | (314,900) |
Real estate | (98,527,500) | 6,755,900 |
Deferred revenue | (851,500) | 823,100 |
Deferred income tax | (649,000) | 171,600 |
Note receivable | (2,000,000) | |
Payments on right of use liability | (301,100) | (273,800) |
Accounts payable and accrued expenses | 7,962,800 | (1,015,400) |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (86,423,800) | 3,017,800 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (745,600) | (408,000) |
Proceeds on the sale of equipment | 69,500 | 987,200 |
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES | (676,100) | 579,200 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Construction loans | 53,366,600 | 21,722,100 |
Payments on construction loans | (24,069,200) | (21,277,300) |
Financing fees construction loans | (5,574,900) | (1,048,700) |
Construction loans related parties | 19,789,600 | 19,758,300 |
Payments on construction loans related parties | (11,793,800) | (28,203,400) |
Financing fees related party construction loans | (1,982,900) | (1,421,200) |
Payments on financing leases | (356,900) | (564,400) |
Proceeds from note payable PPP loan | 582,800 | |
Payments on PPP loan | (9,300) | (1,200) |
Due to related party | (8,100) | |
Repayments on note payable D&O insurance | (1,247,700) | (484,300) |
Net proceeds from issuance of common stock | 25,101,000 | 10,789,000 |
Net proceeds from issuance of preferred stock | 66,572,300 | |
Dividends | (2,054,000) | |
Repurchase of common stock | (5,000,000) | |
Repayment on equipment loans | (1,893,700) | (1,409,000) |
Proceeds from exercise of stock options | 18,000 | |
Deferred offering cost | 65,100 | (65,100) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 110,930,200 | (1,630,500) |
NET INCREASE IN CASH AND RESTRICTED CASH | 23,830,300 | 1,966,500 |
CASH AT BEGINNING OF PERIOD | 2,396,500 | 430,000 |
CASH AND RESTRICTED CASH AT END OF PERIOD | 26,226,800 | 2,396,500 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Interest paid | 4,190,200 | 1,266,300 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Financing of assets additions | 1,566,800 | 4,570,800 |
Dividends declared but not paid | 670,900 | |
Amortization of debt discount capitalized | 3,238,300 | 2,299,500 |
Stock issued for conversion of related party interest and principal | 497,000 | |
Cancellation of finance leases | 99,100 | |
New right of use obligations | 2,943,800 | |
Financing of D&O insurance | 1,410,400 | 1,225,500 |
Conversion of preferred to common stock | $ 64,800 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (deficit) - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 670,900 | $ 119,100 | $ (954,300) | $ (164,300) | $ (1,060,600) | $ (1,224,900) | |
Beginning balance, shares at Dec. 31, 2019 | 3,513,517 | ||||||
Net proceeds from issuance of common stock | $ 10,789,000 | 10,789,000 | 10,789,000 | ||||
Net proceeds from issuance of common stock, shares | 2,031,705 | ||||||
Conversion of Common and Preferred stock | $ 497,000 | 497,000 | 497,000 | ||||
Conversion of common stock and preferred stock (in shares) | 82,826 | ||||||
Stock Compensation Expense | 115,700 | 115,700 | 115,700 | ||||
Stock Compensation Expense, shares | 8,500 | ||||||
Net Income (Loss) | (3,532,800) | (3,532,800) | (229,300) | $ (3,762,100) | |||
Exercise of stock options, shares | |||||||
Ending balance, value at Dec. 31, 2020 | $ 11,956,900 | 234,800 | (4,487,100) | 7,704,600 | (1,289,900) | $ 6,414,700 | |
Ending balance, shares at Dec. 31, 2020 | 5,636,548 | ||||||
Net proceeds from issuance of common stock | $ 25,101,000 | 25,101,000 | 25,101,000 | ||||
Net proceeds from issuance of common stock, shares | 9,200,000 | ||||||
Conversion of Common and Preferred stock | $ 64,800 | $ (64,800) | |||||
Conversion of common stock and preferred stock (in shares) | 20,000 | (3,600) | |||||
Stock Compensation Expense | 499,900 | 499,900 | 499,900 | ||||
Stock Compensation Expense, shares | 60,500 | ||||||
Net Income (Loss) | 8,858,500 | 8,858,500 | (1,700) | 8,856,800 | |||
Exercise of stock options | 18,000 | 18,000 | $ 18,000 | ||||
Exercise of stock options, shares | 45,046 | 45,046 | |||||
Net proceeds from issuance of Preferred Stock | $ 66,572,300 | 66,572,300 | $ 66,572,300 | ||||
Net proceeds issuance of preferred stock, shares | 4,020,555 | ||||||
Preferred Stock Dividends | (2,724,900) | (2,724,900) | (2,724,900) | ||||
Repurchase of Stock | $ (5,000,000) | (5,000,000) | (5,000,000) | ||||
Repurchase of Stock (in shares) | (1,806,752) | ||||||
Ending balance, value at Dec. 31, 2021 | $ 32,122,700 | $ 66,507,500 | $ 752,700 | $ 1,646,500 | $ 101,029,400 | $ (1,291,600) | $ 99,737,800 |
Ending balance, shares at Dec. 31, 2021 | 13,155,342 | 4,016,955 |
RESTATEMENT
RESTATEMENT | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
RESTATEMENT | 1. RESTATEMENT The Company restated the earnings per share for the periods presented in the consolidated statement of operations and earnings per share reconciliation table in Note 2. The following table provides the summary of restated numbers. SCHEDULE OF ERROR CORRECTIONS AND PRIOR PERIOD ADJUSTMENTS As Previously Reported Restated Net Effect Year Ended December 31, 2021 As Previously Reported Restated Net Effect CONSOLIDATED STATEMENT OF OPERATIONS Net Income (Loss) Per Share - Diluted $ 0.24 $ 0.41 $ 0.17 Weighted Average Common Shares Outstanding - Basic 14,336,789 14,336,748 (41 ) Weighted Average Common Shares Outstanding - Diluted 36,915,491 21,793,582 (15,121,909 ) NOTE 2 Earnings (Loss) Per Share Denominator: Weighted average common shares outstanding - basic 14,336,789 14,336,748 (41 ) Options 19,482 147,441 127,959 Warrants 144,456 19,426 (125,030 ) Restricted Stock Awards 29,890 1,789 (28,101 ) Convertible Preferred Stock 22,384,874 7,288,178 (15,096,696 ) Weighted average common shares outstanding and assumed conversion - diluted 36,915,491 21,793,582 (15,121,909 ) Diluted net income (loss) per common share $ 0.24 $ 0.41 $ 0.17 (a) – Outstanding shares of anti-dilutive securities excluded: Common stock securities 18,901,282 18,779,335 (121,947 ) Convertible preferred stock securities* - 12,000 12,000 * Preferred stock is convertible into common shares on a 5.556 to 1 ratio |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Company’s principal business activity involves acquiring raw land and developed lots for the purpose of building and selling single family and multi-family dwellings in Washington, California, Texas, and Florida. It utilizes its heavy equipment resources to develop an inventory of developed lots and provide development infrastructure construction, on a contract basis, for other home builders. Single family construction and infrastructure construction contracts vary but are typically less than one year. On August 1, 2019, the Company changed its name from Harbor Custom Homes, Inc. to Harbor Custom Development, Inc. The Company became an effective filer with the SEC and started trading on The Nasdaq Stock Market LLC (“Nasdaq”) on August 28, 2020. Principles of Consolidation The consolidated financial statements include the following subsidiaries of Harbor Custom Development, Inc. as of the reporting period ending dates as follows (all entities are formed as Washington LLC’s): SCHEDULE OF STATEMENT OF SUBSIDIARIES Names Dates of Formation Attributable Interest December 31, 2021 December 31, 2020 Saylor View Estates, LLC March 30, 2014 51 % 51 % Harbor Materials, LLC* July 5, 2018 N/A 100 % Belfair Apartments, LLC December 3, 2019 100 % 100 % Pacific Ridge CMS, LLC May 24, 2021 100 % N/A Tanglewilde, LLC June 25, 2021 100 % N/A HCDI FL CONDO LLC August 3, 2021 100 % N/A HCDI Mira, LLC August 30, 2021 100 % N/A HCDI Bridgeview LLC October 28, 2021 100 % N/A HCDI Wyndstone, LLC September 15, 2021 100 % N/A HCDI Semiahmoo, LLC December 17, 2021 100 % N/A * Harbor Materials, LLC was voluntarily dissolved with the State of Washington as of January 29, 2021. As of December 31, 2021 and December 31, 2020, the aggregate non-controlling interest was $( 1.3 1.3 Basis of Presentation The accompanying consolidated financial statements include the accounts of Harbor Custom Development, Inc and, its wholly owned subsidiaries, and are presented using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. References to the “ASC” hereafter refer to the Accounting Standards Codification established by the Financial Accounting Standards Board (“FASB”) as the source of authoritative U.S. GAAP. The Company’s Board of Directors and stockholders approved a 1-for-2.22 All numbers in these financial statements are rounded to the nearest $100. Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Use of Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used. Stock-Based Compensation Effective as of November 19, 2018, the Company’s Board of Directors and stockholders approved and adopted the 2018 Incentive and Non-Statutory Stock Option Plan (the “2018 Plan”). The 2018 Plan allows the Administrator (as defined in the 2018 Plan), currently the Board of Directors, to determine the issuance of incentive stock options and non-qualified stock options to eligible employees and outside directors and consultants of the Company. The Company reserved 675,676 Effective as of December 3, 2020, the Company’s Board of Directors and stockholders approved and adopted the 2020 Restricted Stock Plan (the “2020 Plan”). The 2020 Plan allows the Administrator (currently the Compensation Committee) to determine the issuance of restricted stock to eligible officers, directors, and key employees. The Company reserved 700,000 The Company accounts for stock-based compensation in accordance with ASC Topic 718, “ Compensation – Stock Compensation” The Company recognizes all forms of share-based payments, including stock option grants, warrants and restricted stock grants, at their fair value on the grant date, which is based on the estimated number of awards that are ultimately expected to vest. Options and warrants are valued using a Black-Scholes option pricing model, with the exception of the preferred warrants which were valued using an 8 Stock-based compensation expenses are included in operating expenses in the consolidated statement of operations. For the years ended December 31, 2021 and 2020 when computing fair value of share-based payments, the Company has considered the following variables: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS December 31, 2021 December 31, 2020 Risk-free interest rate 0.17 0.84 0.14 1.46 Exercise price $ 2.76 5.00 $ 2.22 6.50 Expected life of grants 2.50 6.50 2.86 6.00 Expected volatility of underlying stock 42.30 56.00 32.39 51.94 Dividends 0 0 The expected term is computed using the “simplified” method as permitted under the provisions of ASC 718-10-S99. The Company uses the simplified method to calculate the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The share price as of the grant date was determined by an independent third party 409(a) valuation until the Company’s stock became publicly traded. Now the share price is the public trading price at the time of grant. Expected volatility is based on the historical stock price volatility of comparable companies’ common stock, as the stock does not have sufficient historical trading activity. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. Earnings (Loss) Per Share Earnings (Loss) per share (“EPS”) is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to Section 260-10-45 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options, warrants, or RSUs. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) attributable to common stockholders per common share for the years ended December 31, 2021 and 2020. SCHEDULE OF NET INCOME (LOSS) PER SHARE Year Ended December 31, 2021 Year Ended December 31, 2020 Numerator: Net income (loss) attributable to common stockholders $ 6,133,600 $ (3,532,800 ) Effect of dilutive securities: 2,724,900 — Diluted net income (loss) $ 8,858,500 $ (3,532,800 ) Denominator: Weighted average common shares outstanding - basic 14,336,748 4,214,418 Dilutive securities (a): Options 147,441 — Warrants 19,426 — Restricted Stock Awards 1,789 — Convertible Preferred Stock 7,288,178 — Weighted average common shares outstanding and assumed conversion – diluted 21,793,582 4,214,418 Weighted average common shares outstanding and assumed conversion – diluted 21,793,582 4,214,418 Basic net income (loss) per common share $ 0.43 $ (0.84 ) Diluted net income (loss) per common share $ 0.41 $ (0.84 ) (a) – Outstanding shares of anti-dilutive securities excluded: Common stock securities 18,779,335 241,609 Convertible preferred stock securities * 12,000 — * Preferred stock is convertible into common shares on a 5.556 to 1 ratio Fair Value of Financial Instruments For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with a maturity of three months or less to be cash equivalents. There were no Restricted Cash On August 10, 2021, the Company entered a Letter of Credit (“LOC”) agreement with WaFd bank in the amount of $0.6 million. The Company signed a lease on October 5, 2021 for a new office space. The landlord of the property, University Street Properties I, LLC, is the beneficiary of the LOC. The amount of funds that cover this LOC were moved by the WaFd bank to a controlled account on August 13, 2021. (See Note 10. Letter of Credit). Accounts Receivable Accounts receivables are reported at the amount the Company expects to collect from outstanding balances. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. The Company determines if receivables are past due based on days outstanding, and amounts are written off when determined to be uncollectible by management. The allowance for doubtful accounts was $ 0 Property and Equipment and Depreciation Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repair charges are expensed as incurred. Depreciation is computed by the straight-line method (after considering their respective estimated residual values) over the estimated useful lives: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Construction Equipment 5 10 Leasehold Improvements The lesser of 10 years or the remaining life of the lease Furniture and Fixtures 5 Computers 3 Vehicles 10 Real Estate Assets Real estate assets are recorded at cost, except when real estate assets are acquired that meet the definition of a business combination in accordance with FASB ASC 805, “Business Combinations,” where acquired assets are recorded at fair value. Interest, property taxes, insurance, and other incremental costs (including salaries) directly related to a project are capitalized during the construction period of major facilities and land improvements. The capitalization period begins when activities to develop the parcel commence and ends when the asset constructed is completed. The capitalized costs are recorded as part of the asset to which they relate and are expensed when the underlying asset is sold. The Company capitalized interest from related party borrowings of $ 1.0 1.0 2.4 2.4 A property is classified as “held for sale” when all the following criteria for a plan of sale have been met: (1) Management, having the authority to approve the action, commits to a plan to sell the property; (2) The property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (3) An active program to locate a buyer and other actions required to complete the plan to sell, have been initiated; (4) The sale of the property is probable and is expected to be completed within one year of the contract date; (5) The property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) Actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When all these criteria have been met, the property is classified as “held for sale.” In addition to the annual assessment of potential triggering events in accordance with ASC 360, the Company applies a fair value-based impairment test to the net book value of assets on an annual basis and on an interim basis if certain events or circumstances indicate that an impairment loss may have occurred. As of December 31, 2021 and December 31, 2020, the Company did not have any projects that qualified for an impairment charge. Revenue and Cost Recognition ASC 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contract to provide goods or services to customers. In accordance with ASC 606, revenue is recognized when a customer obtains control of the promised good or service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods or services. The provision of ASC 606 includes a five-step process by which the Company determines revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which the Company expects to be entitled in exchange for those goods or services. ASC 606 requires the Company to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, performance obligations are satisfied. A detailed breakdown of the five-step process for the revenue recognition of Entitled Land Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a buyer to purchase the parcel of entitled land. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering entitled land to the customer, which are required to meet certain specifications outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract. The parcel is a separate performance obligation for which the specific price is in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Developed Lots Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with the buyer to purchase lots that have completed infrastructure. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering developed lots to the customer, which are required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract. All lots are a single performance obligation for the specific price in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Fee Build Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a customer to construct the required infrastructure so that houses can be developed on the lots. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering developed lots which are required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract. The nature of the industry involves a number of uncertainties that can affect the current state of the contract. Variable considerations are the estimates made due to a contract modification in the contractual service. Change orders, claims, extras, or back charges are common in contractual services activity as a form of variable consideration. If there is going to be a contract modification, judgment by management will need to be made to determine if the variable consideration is enforceable. The following factors are considered in determining if the variable consideration is enforceable: 1. The customer’s written approval of the scope of the change order; 2. Current contract language that indicates clear and enforceable entitlement relating to the change order; 3. Separate documentation for the change order costs that are identifiable and reasonable; and 4. The Company’s experience in negotiating change orders, especially as it relates to the specific type of contract and change order being evaluated. Once the Company receives a contract, it generates a budget of projected costs for the contract based on the contract price. If the scope of the contract during the contractual period needs to be modified, the Company files a change order. The Company does not continue to perform services until the change modification is agreed upon with documentation by both the Company and the customer. There are few times that claims, extras, or back charges are included in the contract. If there are multiple performance obligations to the contract, the costs must be allocated appropriately and consistently to each performance obligation. In the Company’s experience, usually only one performance obligation is stated per contract. If there are multiple services provided for one customer, the Company has a policy of splitting out the services over multiple contracts. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company uses the total costs incurred on the project relative to the total expected costs to satisfy the performance obligation. The input method involves measuring the resources consumed, labor hours expended, costs incurred, time lapsed, or machine hours used relative to the total expected inputs to the satisfaction of the performance obligation. Costs incurred prior to actual contract (i.e., design, engineering, procurement of material, etc.) should not be recognized as the Company does not have control of the good/service provided. When the estimate on a contract indicates a loss or claims against costs incurred reduce the likelihood of recoverability of such costs, the Company records the entire estimated loss in the period the loss becomes known. Project contracts typically provide for a schedule of billings or invoices to the customer based on the Company’s job to date percentage of completion of specific tasks inherent in the fulfillment of its performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in the statement of operations can and usually does differ from amounts that can be billed or invoiced to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceed cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in the Company’s balance sheet under the caption “Contract Asset, net” which is further disclosed in Note 20. Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized on the contract would be reflected as a current liability in the Company’s balance sheet. A detailed breakdown of the five-step process for the revenue recognition of Home Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a homebuyer to purchase a lot with a completed house. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering a developed lot with a completed house to the customer, which is required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract. Each lot with a completed house is a separate performance obligation, for which the specific price in the contract is allocated. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Construction Materials sold to or received from contractors is as follows: 1. Identify the contract with a customer. There are no signed contracts. Each transaction is verbally agreed to with the customer. 2. Identify the performance obligations in the contract. The Company delivers or receives materials from customers based on the verbal agreement reached. 3. Determine the transaction price. The Company has a set price list for receiving approved fill materials to recycle or provides customers with a combination of said materials. 4. Allocation of the transaction price to performance obligations in the contract. There is only one performance obligation, which is to pick up or deliver the materials. The entire transaction price is therefore allocated to the performance obligation. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The performance obligation is fulfilled, and revenue is recognized when the materials have been received or delivered by the Company. Revenues from contracts with customers are summarized by category as follows for the years ended December 31: SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS Year Ended Year Ended December 31, 2021 December 31, 2020 Entitled Land $ 20,625,000 $ — Developed Lots 26,825,500 12,538,000 Fee Build 6,802,900 — Homes 17,654,600 37,276,400 Construction Materials 444,700 582,600 Total Revenue $ 72,352,700 $ 50,397,000 Disaggregation of Revenue from Contracts with Customers The following table disaggregates the Company’s revenue based on the type of sale or service and the timing of satisfaction of performance obligations for the years ended December 31, 2021 and 2020: DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS Year Ended Year Ended December 31, 2021 December 31, 2020 Performance obligations satisfied at a point in time $ 65,549,800 $ 50,397,000 Performance obligations satisfied over time 6,802,900 — Total Revenue $ 72,352,700 $ 50,397,000 Cost of Sales Land acquisition costs are allocated to each lot based on the size of the lot in relation to the size of the total project. Development costs and capitalized interest are allocated to lots sold based on the same criteria. Costs relating to the handling of recycled construction materials and converting items into usable construction materials for resale are charged to cost of sales as incurred. Advertising Advertising expense for the years ended December 31, 2021 and 2020 was $ 0.1 0.04 Leases The Company adopted ASC Topic 842, Leases, as amended, on January 1, 2019. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to not separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease. The Company’s leases consist of leaseholds on office space, machinery, and equipment. The Company determines if an arrangement contains a lease at inception as defined by ASC 842. In order to meet the definition of a lease under ASC 842, the contractual arrangement must convey to us the right to control the use of an identifiable asset for a period of time in exchange for consideration. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Income Taxes Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss, credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. Management applies the criteria established under FASB Accounting for Income taxes (Topic 740) (the Update) to determine if any valuation allowances are needed each year. The Company recognizes a tax benefit for an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. There are no uncertain tax positions as of December 31, 2021 and December 31, 2020. Recent Accounting Pronouncements On December 18, 2019, the FASB released Accounting Standards Update No. 2019-12, Income taxes (Topic 740) (the Update). The Board issued this update as part of its initiative to reduce complexity in accounting standards. The company has adopted this standard; there were no material impacts to the balance sheet, income statement, statement of cash flows, or tax footnote. In August 2020, the FASB issued Accounting Standards Update 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 on January 1, 2021. The ASU 2020-06 had an impact on the Company’s preferred stock disclosures and EPS as well as eliminating the accounting for beneficial conversion features. On May 3, 2021, the FASB released Accounting Standards Update No. 2021-04, Compensation – Earning Per Share (Topic 260), Debt - Modifications and Extinguishments (subtopic 470-50), Compensation - Stock compensation (Topic 718), Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. FASB issued this update to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example warrants) that remain equity classified after modification or exchange. The Standard is effective for fiscal years beginning after December 15, 2021. The Company does not believe the adoption will have a material impact on the Company. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying value of such assets may not be fully recoverable. Impairment is present when the sum of estimated undiscounted future cash flow expected to result from use of the assets is less than carrying value. If impairment is present, the carrying value of the impaired asset is reduced to its fair value. Fair value is determined based on discounted cash flow or appraised values, depending on the nature of the assets. As of December 31, 2021 and December 31, 2020, there were no Offering Costs Associated with a Public Offering The Company complies with the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “ Expenses of Offering.” On January 15 and 20, 2021, the Company closed on a follow-on public offering and over-allotment option, respectively, of common stock. During 2020, the Company incurred approximately $ 0.1 |
CONCENTRATION, RISKS, AND UNCER
CONCENTRATION, RISKS, AND UNCERTAINTIES | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION, RISKS, AND UNCERTAINTIES | 3. CONCENTRATION, RISKS, AND UNCERTAINTIES Cash Concentrations The Company maintains cash balances at various financial institutions. These balances are secured by the Federal Deposit Insurance Corporation. These balances generally exceed the federal insurance limits. Uninsured cash balances were $ 24.5 2.1 Revenue Concentrations Homes For the year ended December 31, 2021 and 2020, there were no Developed Lots For the year ended December 31, 2021 and 2020, Lennar Northwest, Inc. (“Lennar”) represented 26 100 23 18 14 14 Entitled Land For the year ended December 31, 2021 and 2020, Lennar represented 51 0 45 Fee Build For the years ended December 31, 2021 and 2020, Lennar represented 100 0 COVID-19 In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“ COVID-19 The COVID-19 Pandemic has had the following effect on the Company’s business: 1. Construction not related to safety, spoliation, or critical infrastructure was halted by Washington State Governor Inslee (the “Governor”) on March 23, 2020. Some operations could continue based on the aforementioned exceptions to the shutdown order, but the Company did experience a significant operational slowdown. 2. Soundview Estates (a large Harbor Custom Development, Inc. site) continued selective activities that yielded rock byproduct, considered an essential material, needed for critical infrastructure projects for an Amazon distribution center and a local hospital. 3. On April 24, 2020, the Governor approved the restart of most residential housing projects, deeming them essential, as long as they adhered to certain safety measures. Under this order, most existing permitted residential homes or projects were considered essential. The order allowed the Company to resume near full construction activities on all permitted lots. 4. On May 1, 2020, the Governor established a four-phase plan for Washington businesses to follow. All Harbor Custom Development, Inc. development sites were in Phase 3 of the plan where construction was able to continue, and new construction was allowed, as long as the Company created a safety plan adhering to certain safety practices, which the Company had done. 5. As of June 30, 2021, Washington State reopened the state under the Washington Ready plan. All industry sectors previously covered by the Roadmap to Recovery or the Safe Start Plan (which included all Harbor Custom Development, Inc. operational activities) returned to usual capacity and operations. The Company has not experienced any material cancellations of sales contract. The Company has experienced some supply-chain issues with both cabinetry and appliances related to COVID-19. As of the date of this report, the Company’s projects are on-schedule and operations are not being materially impacted by the COVID-19 pandemic. While there could ultimately be a material impact on operations and liquidity of the Company, at the time of issuance of this report, the ultimate impact could not be determined. |
NOTES RECEIVABLE
NOTES RECEIVABLE | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | 4. NOTES RECEIVABLE The total principal balance of the notes amounted to $ 2.0 $ 0.5 $ 1.5 8 9 $ 2.0 0 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 5. PROPERTY AND EQUIPMENT Property and equipment stated at cost, less accumulated depreciation and amortization, consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2021 December 31, 2020 Machinery and Equipment $ 10,577,600 $ 8,908,000 Vehicles 71,800 73,500 Furniture and Fixtures 420,300 136,300 Leasehold Improvements 81,200 7,000 Total Fixed Assets 11,150,900 9,124,800 Less Accumulated Depreciation (1,951,200 ) (948,800 ) Fixed Assets, Net $ 9,199,700 $ 8,176,000 Depreciation expense was $ 1.1 0.6 |
REAL ESTATE
REAL ESTATE | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
REAL ESTATE | 6. REAL ESTATE Real Estate consisted of the following components: SCHEDULE OF REAL ESTATE December 31, 2021 December 31, 2020 Land Held for Development $ 73,524,400 $ 9,532,800 Construction in Progress 43,362,700 9,042,700 Held for Sale 5,249,000 1,794,800 Real estate $ 122,136,100 $ 20,370,300 |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued liabilities consisted of the following: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES December 31, 2021 December 31, 2020 Trade Accounts Payable $ 5,558,400 $ 2,358,800 Income Tax Payable 2,415,900 — Accrued Compensation, Bonuses, and Benefits 1,071,700 108,900 Accrued Quarry Reclamation Costs 500,000 124,500 Retainage Payable 445,800 — Other Accruals 671,000 107,800 Accounts Payable and Accrued Expenses $ 10,662,800 $ 2,700,000 |
EQUIPMENT LOANS
EQUIPMENT LOANS | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
EQUIPMENT LOANS | 8. EQUIPMENT LOANS Equipment loans consists of the following: SCHEDULE OF EQUIPMENT LOANS December 31, 2021 December 31, 2020 Various notes payable to banks and financial institutions with interest rates varying from 0.00 13.89 400 11,600 $ 5,268,500 $ 5,595,500 Book value of collateralized equipment: $ 7,229,000 $ 6,475,600 Future equipment loan maturities are as follows: SCHEDULE OF FUTURE EQUIPMENT LOAN MATURITIES For the year ended December 31: 2021 2022 $ 1,887,800 2023 1,738,300 2024 1,491,700 2025 150,700 2026 — Equipment loan $ 5,268,500 |
CONSTRUCTION LOANS
CONSTRUCTION LOANS | 12 Months Ended |
Dec. 31, 2021 | |
Construction Loans | |
CONSTRUCTION LOANS | 9. CONSTRUCTION LOANS The Company has various construction loans with private individuals and finance companies. The loans are collateralized by specific construction projects. All loans are generally on a one 5 39 39.4 10.1 122.1 20.4 |
LETTER OF CREDIT
LETTER OF CREDIT | 12 Months Ended |
Dec. 31, 2021 | |
Letter Of Credit | |
LETTER OF CREDIT | 10. LETTER OF CREDIT The Company entered into a letter of credit agreement with WaFd bank of $ 0.6 February 1, 2032 1% |
NOTE PAYABLE D&O INSURANCE
NOTE PAYABLE D&O INSURANCE | 12 Months Ended |
Dec. 31, 2021 | |
Note Payable Do Insurance | |
NOTE PAYABLE D&O INSURANCE | 11. NOTE PAYABLE D&O INSURANCE The Company purchased D&O insurance on August 28, 2021 for $ 1.5 0.1 1.4 4.42 0.9 The Company purchased D&O insurance on August 28, 2020 for $ 1.5 0.3 1.2 4.74 0.7 |
NOTE PAYABLE PPP
NOTE PAYABLE PPP | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE PPP | 12. NOTE PAYABLE PPP On April 11, 2020, the Company entered into a term note with Timberland Bank, with a principal amount of $ 0.6 1.00 The PPP Term Note was unsecured and guaranteed by the United States Small Business Administration. The Company applied for forgiveness of the PPP Term Note, with the amount eligible for forgiveness equal to the sum of payroll costs, covered rent and mortgage obligations, and covered utility payments incurred by the Company during the applicable period beginning upon receipt of PPP Term Note funds, calculated in accordance with the terms of the CARES Act. On February 1, 2021 and November 9, 2020, the SBA forgave $ 0.01 0.6 As of December 31, 2021 and December 31, 2020, the balance of the PPP Loan was $ 0 0.02 |
DEFINED CONTRIBUTION PLAN
DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
DEFINED CONTRIBUTION PLAN | 13. DEFINED CONTRIBUTION PLAN Effective January 1, 2016, the Company established a 401(k) plan for qualifying employees; employee contributions are voluntary. Company contributions to the plan for the years ended December 31, 2021 and 2020 were $ 0.1 0.1 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES From time to time the Company is subject to compliance audits by federal, state, and local authorities relating to a variety of regulations including wage and hour laws, taxes, and workers’ compensation. There are no significant or pending litigation or regulatory proceedings known at this time. On June 15, 2020, the Company entered into a purchase and sale agreement to acquire property for the construction of 33 town homes located in East Bremerton, Washington for $ 2.0 On September 17, 2020, the Company entered into a purchase and sale agreement for the acquisition of 9.6 1.5 On December 2, 2021, the Company entered into a purchase and sale agreement for the acquisition of 438 14.0 On December 15, 2021, the Company entered into a purchase and sale agreement for the acquisition of 66 town home units located in Poulsbo, Washington for $ 2.9 On December 22, 2021, the Company entered into a purchase and sale agreement to acquire property for the construction of 500 units located in Hudson, Florida for $ 7.4 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS Notes Payable The Company entered into construction loans with Sound Equity, LLC of which Robb Kenyon, a former director and minority shareholder, is a partner. These loans were originated between April 2019 and June 2021; all of the loans have a one-year 7.99 12.00 0.6 0.4 0.2 0.2 1.4 0.7 0.9 0.5 14.5 6.4 The Company entered into a construction loan with Curb Funding, LLC of which Robb Kenyon a former director and minority shareholder, is 100 1 12 0 0.004 0 0.001 0 0.1 0 0.003 Robb Kenyon resigned as a director of the Company on July 8, 2021, at which point the above loans ceased to be related party transactions. On April 19, 2019, the Company entered into a construction loan with Olympic Views, LLC of which the Company’s Chief Executive Officer and President previously owned a 50% 0.4 12% April 19, 2020 0 0 0 0.02 0.1 6.00 82,826 Due to Related Party The Company utilizes a quarry to process waste materials from the completion of raw land into sellable/buildable lots. The quarry is located on land owned by SGRE, LLC which is 100 25 0.01 0 0.1 0.1 Richard Schmidtke, a Company director, provided accounting services in 2021 and 2020 to the Company. On December 31, 2021 and December 31, 2020, the fees payable to Mr. Schmidtke were $ 0 0.001 0.001 0.05 Land Purchase from a Related Party On September 2, 2020, the Company purchased 99 undeveloped lots for $ 3.4 50 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
LEASES | 16. LEASES The Company determines if an arrangement contains a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company’s leases consist of leaseholds on office space, machinery, and equipment. The Company utilized a portfolio approach in determining the discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category of the underlying asset and the Company’s estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. The Company also considered its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating the incremental borrowing rates. The lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. These operating leases contain renewal options for periods ranging from three five years Leases with a term of 12 months or less are not recorded on the balance sheet, per the election of the practical expedient noted above. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company recognizes variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred. The components of lease expense were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE Year Ended Year Ended December 31, 2021 December 31, 2020 Finance leases: Depreciation of assets $ 152,700 $ 88,000 Interest on lease liabilities 43,400 38,000 Operating lease expense 550,400 328,300 Total net lease cost $ 746,500 $ 454,300 Supplemental balance sheet information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES December 31, 2021 December 31, 2020 Operating leases: Operating lease ROU assets $ 3,429,700 $ 873,800 Total ROU Liabilities $ 3,484,400 $ 841,700 Finance leases: Property and equipment, at cost $ 1,365,500 $ 1,411,100 Less: Accumulated depreciation 293,100 140,400 Property and equipment, net $ 1,072,400 $ 1,270,700 Total Finance lease liabilities $ 543,400 $ 999,400 Supplemental cash flow and other information related to leases was as follows: SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES Year Ended Year Ended December 31, 2021 December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (301,100 ) $ (273,800 ) Financing cash flows from finance leases (356,900 ) (564,400 ) Assets obtained in exchange for lease liabilities: Operating leases $ 2,943,800 $ — Finance leases — 1,043,100 Weighted average remaining lease term (in years): Operating leases 8.6 3.2 Finance leases 2.7 3.1 Weighted average discount rate: Operating leases 4.7 % 9.9 % Finance leases 4.8 % 5.2 % The minimum lease payments under the terms of the leases are as follows for the years ended December 31: SCHEDULE OF MINIMUM LEASE PAYMENTS Operating Leases Finance Leases Total 2022 $ 611,700 $ 268,900 $ 880,600 2023 542,000 238,600 780,600 2024 433,300 74,900 508,200 2025 328,900 — 328,900 2026 338,800 — 338,800 Thereafter 1,952,600 — 1,952,600 Total lease payments $ 4,207,300 $ 582,400 $ 4,789,700 Less amount of discount/interest (722,900 ) (39,000 ) (761,900 ) $ 3,484,400 $ 543,400 $ 4,027,800 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 17. INCOME TAX The components of net deferred tax assets and liabilities at December 31, 2021 and 2020 are set forth below: SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS AND LIABILITIES December 31, 2021 December 31, 2020 Deferred tax assets: Federal NOL Carryforward $ 1,926,000 $ 1,794,200 UNICAP 598,400 193,000 Lease Liability 736,400 176,700 Stock Based compensation 54,900 9,200 Investments 7,000 57,100 Total assets $ 3,322,700 $ 2,230,200 Deferred tax liabilities: Property and equipment $ 1,948,900 $ 1,705,400 Right of use assets 724,800 183,500 Total liabilities $ 2,673,700 $ 1,888,900 Subtotal deferred tax assets 649,000 341,300 Valuation Allowance — (341,300 ) Net deferred tax assets $ 649,000 $ — In accordance with GAAP, management assesses whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized, and if a valuation allowance is warranted. On December 31, 2021, management determined that it was more-likely-than-not that the Company’s deferred tax assets would be realized. Accordingly, on December 31, 2021, no valuation allowance was recorded against the Company’s federal net deferred tax assets. At December 31, 2020, management determined that it was more-likely-than-not that a valuation amount should be applied against the Company’s net deferred tax assets. The change in valuation allowance in the current year was a decrease of $ 0.3 The Company has approximately $ 9.2 The components of income tax expense and the effective tax rates for the years ended December 31, 2021 and 2020 are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE Year Ended Year Ended December 31, 2021 December 31, 2020 Current: Federal $ 2,394,500 $ — State 21,400 — Total Current 2,415,900 — Deferred: Federal (649,000 ) (224,500 ) State — — Total Deferred (649,000 ) (224,500 ) Valuation Allowance — 341,300 Total Income Tax Expense $ 1,766,900 $ 116,800 The expected tax rate differs from the U.S. Federal statutory rate as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2021 2020 US Federal statutory rate 21.0 % 21.0 % Change in Federal Valuation Allowance (3.1 )% (9.4 )% Tax Credits (2.6 )% — % Incentive Stock Options 0.5 % — % Adjustment of Deferred Tax 0.2 % (16.3 )% State Taxes 0.2 % — % Change in Tax Rate 0.1 % — % PPP Loan forgiveness — % 3.2 % Non-controlling Interest — % (1.3 )% Other 0.1 % (0.4 )% Effective Tax Rate 16.4 % (3.2 )% On December 31, 2021, the Company has not recorded any uncertain tax positions for any tax year and treats accrued interest and penalties on income tax liabilities as income tax expense. The Company files an income tax return in the U.S. and is subject to examination by the IRS for the tax years 2018, 2019 and 2020. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | 18. STOCKHOLDERS’ EQUITY Common Stock The Company is authorized to issue 50,000,000 13,155,342 Each share of common stock has one vote per share for all purposes. Common stock does not provide any preemptive, subscription or conversion rights and there are no redemption or sinking fund provisions or rights. Common stockholders are not entitled to cumulative voting for purposes of electing members to the Board of Directors. Preferred Stock At December 31, 2021, the Company is authorized to issue 10,000,000 no 4,016,955 8 25.00 25.00 Conversion at Option of Holder 4.50 5.556 Dividends Preferred Stock 8 0.7 Common Stock. Public Offering and Conversion of Debt The registration statement for the Company’s initial public offering (the “Initial Public Offering”) became effective on August 28, 2020. On September 1, 2020, the Company closed on the Initial Public Offering of 2,031,705 6.00 265,005 12.2 10.8 In addition, upon closing of the Initial Public Offering, the Company issued to the underwriters warrants to purchase an aggregate of 88,335 7.50 four years 0.2 Also, upon closing of the Initial Public Offering, the Company issued to Olympic Views, LLC (“Olympic”), 82,826 0.4 0.1 6.00 2021 Common Stock Offering On January 15 and 20, 2021, the Company closed on an offering (the “Follow-On Offering”) of 9,200,000 3.00 1,200,000 27.6 25.1 In addition, upon closing of the Follow-On Offering, the Company issued to the underwriters, warrants to purchase an aggregate of 400,000 3.75 five years 0.5 Preferred Stock Offerings On June 11, 2021, the Company closed an offering (the “Preferred Stock Offering”) for 1,200,000 4,140,000 5.00 540,000 30.0 60,555 1.4 28.7 In addition, upon closing of the Preferred Stock Offering, the Company issued to the underwriters two warrants, including (i) warrants to purchase 12,000 36,000 5.00 The warrants issued to investors in the Preferred Stock Offering have an exercise price of $ 5.00 five years 3.7 On October 7, 2021, the Company closed an offering (the “Follow-On Preferred Stock Offering”) for 2,400,000 13,800,000 2.97 1,800,000 36.0 360,000 5.4 37.9 The warrants issued to investors in the Follow-On Preferred Stock Offering have an exercise price of $ 2.97 five years 6.0 Repurchase of Equity Securities On November 3, 2021, the Board of Directors approved a stock repurchase program authorizing the repurchase of up to $ 5.0 17 1,806,752 2.77 5.0 (A) Options The following is a summary of the Company’s option activity: SCHEDULE OF SHARE-BASED PAYMENT ARRANGEMENT, OPTION, ACTIVITY Options Weighted Average Exercise Price Outstanding – December 31, 2019 264,426 $ 0.41 Exercisable – December 31, 2019 117,218 $ 0.42 Granted 213,784 $ 4.79 Exercised — $ — Forfeited/Cancelled (36,038 ) $ 0.40 Outstanding – December 31, 2020 442,172 $ 2.53 Exercisable – December 31, 2020 219,085 $ 1.31 Granted 240,000 $ 3.23 Exercised (45,046 ) $ 0.40 Forfeited/Cancelled (173,875 ) $ 3.27 Outstanding – December 31, 2021 463,251 $ 2.82 Exercisable – December 31, 2021 343,724 $ 2.77 SCHEDULE OF SHARE-BASED PAYMENT ARRANGEMENT, OPTION, EXERCISE PRICE RANGE Options Outstanding Options Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.40 6.50 463,251 6.23 $ 2.82 343,724 $ 2.77 During the year ended December 31, 2021, the Company issued 240,000 2.76 3.41 10 two three years 0.3 Stock-Based Compensation. During the year ended December 31, 2021, the Company had 45,046 0.40 0.02 The Company recognized share-based compensation net of forfeitures related to options of $ 0.3 0.1 On December 31, 2021, unrecognized share-based compensation was $ 0.1 The intrinsic value for outstanding and exercisable options as of December 31, 2021 was $ 0.4 0.3 1.0 0.7 (B) Warrants The following is a summary of the Company’s Common Stock Warrant activity: SCHEDULE OF WARRANTS ACTIVITY Warrants Weighted Average Exercise Price Outstanding – December 31, 2019 22,524 $ 0.40 Exercisable – December 31, 2019 22,524 $ 0.40 Granted 88,335 $ 7.5 Exercised — $ — Forfeited/Cancelled — $ — Outstanding – December 31, 2020 110,859 $ 6.06 Exercisable – December 31, 2020 22,524 $ 0.40 Granted 18,376,000 $ 3.45 Exercised — $ — Forfeited/Cancelled — $ — Outstanding – December 31, 2021 18,486,859 $ 3.46 Exercisable – December 31, 2021 18,486,859 $ 3.46 SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.40 7.50 18,486,859 4.68 $ 3.46 18,486,859 $ 3.46 During the year ended December 31, 2021, the Company issued 18,376,000 2.97 5.00 5 0 6 9.9 The intrinsic value for outstanding and exercisable warrants as of December 31, 2021 and 2020 was $ 0.1 0.1 The following is a summary of the Company’s Preferred Stock Warrant activity: SCHEDULE OF WARRANTS ACTIVITY Warrants Weighted Average Exercise Price Outstanding – December 31, 2019 — $ — Exercisable – December 31, 2019 — $ — Granted — $ — Exercised — $ — Forfeited/Cancelled — $ — Outstanding – December 31, 2020 — $ — Exercisable – December 31, 2020 — $ — Granted 12,000 $ 24.97 Exercised — $ — Forfeited/Cancelled — $ — Outstanding – December 31, 2021 12,000 $ 24.97 Exercisable – December 31, 2021 12,000 $ 24.97 SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 24.97 12,000 4.44 $ 24.97 12,000 $ 24.97 During the year ended December 31, 2021, the Company issued 12,000 24.97 5 6 0.1 The intrinsic value for outstanding and exercisable preferred warrants as of December 31, 2021 and 2020 was $ 0 (C) Restricted Stock Plan The following is a summary of the Company’s restricted stock activity: SCHEDULE OF RESTRICTED STOCK UNIT ACTIVITY Restricted Stock Weighted Average Exercise Price Non Vested Balance - December 31, 2019 — $ — Granted 34,000 $ 4.53 Vested 8,500 $ 4.53 Forfeited/Cancelled — $ — Non Vested Balance - December 31, 2020 25,500 $ 4.53 Granted 180,000 $ 2.58 Vested 60,500 $ 3.71 Forfeited/Cancelled — $ — Non Vested Balance - December 31, 2021 145,000 $ 2.45 The Company periodically grants restricted stock awards to the Board of Directors and certain employees pursuant to the 2020 Plan. These typically are awarded by the Compensation Committee at one time and from time to time, to vest in four equal installments quarterly, unless otherwise determined by the Compensation Committee. The Company recognized $ 0.2 0.04 0.5 |
SEGMENTS
SEGMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENTS | 19. SEGMENTS The Company’s business is organized into four 99% 1) Homes 2) Developed lots 3) Entitled land 4) Fee build The reporting segments follow the same accounting policies used in the preparation of the Company’s consolidated financial statements. The following represents selected information for the Company’s reportable segments for the years ended December 31, 2021 and 2020. Immaterial construction materials revenues and costs are included in the homes segment. SCHEDULE OF COMPANY’S REPORTABLE SEGMENT Year Ended December 31, 2021 Year Ended December 31, 2020 Revenue by segment Homes $ 17,654,600 $ 37,276,400 Developed lots 26,825,500 12,538,000 Entitled land 20,625,000 — Fee Build 6,802,900 — Other 444,700 582,600 Total Revenue $ 72,352,700 $ 50,397,000 Cost of goods sold by segment Homes $ 15,168,500 $ 35,140,000 Developed lots 15,885,300 13,253,800 Entitled land 11,689,100 — Fee Build 5,991,300 — Other 1,685,200 — Cost of goods sold by segment $ 50,419,400 $ 48,393,800 Gross profit (loss) by segment Homes $ 2,486,100 $ 2,136,400 Developed lots 10,940,200 (715,800 ) Entitled land 8,935,900 — Fee Build 811,600 — Other (1,240,500 ) 582,600 Gross profit (loss) by segment $ 21,933,300 $ 2,003,200 |
UNCOMPLETED CONTRACTS
UNCOMPLETED CONTRACTS | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
UNCOMPLETED CONTRACTS | 20. UNCOMPLETED CONTRACTS Costs, estimated earnings and billings on uncompleted contracts are summarized as follows at December 31, 2021 and December 31, 2020: SUMMARY OF COST, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS December 31, 2021 December 31, 2020 Costs incurred on uncompleted contracts $ 5,991,300 $ — Estimated earnings 811,600 — Costs and estimated earnings on uncompleted contracts 6,802,900 — Billings to date 4,635,700 — Costs and estimated earnings in excess of billings on uncompleted contracts 2,167,200 — Billings in excess of costs and estimated earnings on uncompleted contracts — — Total earnings from completed and uncompleted contracts $ 2,167,200 $ — The contract asset of $ 2.2 0.8 1.4 1.0 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS On January 12, 2022, the board of directors of the Company declared a monthly cash dividend on the Company’s 8.0% 0.167 On January 26, 2022, the board of directors of the Company declared a monthly cash dividend on the Company’s 8.0% 0.167 On January 26, 2022, the Company entered into a preliminary commitment with Marquee Funding Group for a $ 15.7 75 On February 14, 2022, the Company entered into a preliminary commitment with Washington Federal Bank for a $ 29.7 177 On February 25, 2022, the Company entered into a purchase and sale agreement to sell land in Blaine, Washington for $ 4.5 On March 3, 2022, the Company entered into a purchase and sale agreement to purchase land in Tacoma, Washington for $ 6.7 On March 7, 2022, the Company entered into a senior secured revolving credit facility with BankUnited for $ 25.0 4.75% On March 14, 2022, the board of directors of the Company declared a monthly cash dividend on the Company’s 8.0% 0.167 |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The Company’s principal business activity involves acquiring raw land and developed lots for the purpose of building and selling single family and multi-family dwellings in Washington, California, Texas, and Florida. It utilizes its heavy equipment resources to develop an inventory of developed lots and provide development infrastructure construction, on a contract basis, for other home builders. Single family construction and infrastructure construction contracts vary but are typically less than one year. On August 1, 2019, the Company changed its name from Harbor Custom Homes, Inc. to Harbor Custom Development, Inc. The Company became an effective filer with the SEC and started trading on The Nasdaq Stock Market LLC (“Nasdaq”) on August 28, 2020. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the following subsidiaries of Harbor Custom Development, Inc. as of the reporting period ending dates as follows (all entities are formed as Washington LLC’s): SCHEDULE OF STATEMENT OF SUBSIDIARIES Names Dates of Formation Attributable Interest December 31, 2021 December 31, 2020 Saylor View Estates, LLC March 30, 2014 51 % 51 % Harbor Materials, LLC* July 5, 2018 N/A 100 % Belfair Apartments, LLC December 3, 2019 100 % 100 % Pacific Ridge CMS, LLC May 24, 2021 100 % N/A Tanglewilde, LLC June 25, 2021 100 % N/A HCDI FL CONDO LLC August 3, 2021 100 % N/A HCDI Mira, LLC August 30, 2021 100 % N/A HCDI Bridgeview LLC October 28, 2021 100 % N/A HCDI Wyndstone, LLC September 15, 2021 100 % N/A HCDI Semiahmoo, LLC December 17, 2021 100 % N/A * Harbor Materials, LLC was voluntarily dissolved with the State of Washington as of January 29, 2021. As of December 31, 2021 and December 31, 2020, the aggregate non-controlling interest was $( 1.3 1.3 |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of Harbor Custom Development, Inc and, its wholly owned subsidiaries, and are presented using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. References to the “ASC” hereafter refer to the Accounting Standards Codification established by the Financial Accounting Standards Board (“FASB”) as the source of authoritative U.S. GAAP. The Company’s Board of Directors and stockholders approved a 1-for-2.22 All numbers in these financial statements are rounded to the nearest $100. |
Reclassification | Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
Use of Estimates | Use of Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used. |
Stock-Based Compensation | Stock-Based Compensation Effective as of November 19, 2018, the Company’s Board of Directors and stockholders approved and adopted the 2018 Incentive and Non-Statutory Stock Option Plan (the “2018 Plan”). The 2018 Plan allows the Administrator (as defined in the 2018 Plan), currently the Board of Directors, to determine the issuance of incentive stock options and non-qualified stock options to eligible employees and outside directors and consultants of the Company. The Company reserved 675,676 Effective as of December 3, 2020, the Company’s Board of Directors and stockholders approved and adopted the 2020 Restricted Stock Plan (the “2020 Plan”). The 2020 Plan allows the Administrator (currently the Compensation Committee) to determine the issuance of restricted stock to eligible officers, directors, and key employees. The Company reserved 700,000 The Company accounts for stock-based compensation in accordance with ASC Topic 718, “ Compensation – Stock Compensation” The Company recognizes all forms of share-based payments, including stock option grants, warrants and restricted stock grants, at their fair value on the grant date, which is based on the estimated number of awards that are ultimately expected to vest. Options and warrants are valued using a Black-Scholes option pricing model, with the exception of the preferred warrants which were valued using an 8 Stock-based compensation expenses are included in operating expenses in the consolidated statement of operations. For the years ended December 31, 2021 and 2020 when computing fair value of share-based payments, the Company has considered the following variables: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS December 31, 2021 December 31, 2020 Risk-free interest rate 0.17 0.84 0.14 1.46 Exercise price $ 2.76 5.00 $ 2.22 6.50 Expected life of grants 2.50 6.50 2.86 6.00 Expected volatility of underlying stock 42.30 56.00 32.39 51.94 Dividends 0 0 The expected term is computed using the “simplified” method as permitted under the provisions of ASC 718-10-S99. The Company uses the simplified method to calculate the expected term of share options and similar instruments as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The share price as of the grant date was determined by an independent third party 409(a) valuation until the Company’s stock became publicly traded. Now the share price is the public trading price at the time of grant. Expected volatility is based on the historical stock price volatility of comparable companies’ common stock, as the stock does not have sufficient historical trading activity. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (Loss) per share (“EPS”) is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to Section 260-10-45 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options, warrants, or RSUs. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) attributable to common stockholders per common share for the years ended December 31, 2021 and 2020. SCHEDULE OF NET INCOME (LOSS) PER SHARE Year Ended December 31, 2021 Year Ended December 31, 2020 Numerator: Net income (loss) attributable to common stockholders $ 6,133,600 $ (3,532,800 ) Effect of dilutive securities: 2,724,900 — Diluted net income (loss) $ 8,858,500 $ (3,532,800 ) Denominator: Weighted average common shares outstanding - basic 14,336,748 4,214,418 Dilutive securities (a): Options 147,441 — Warrants 19,426 — Restricted Stock Awards 1,789 — Convertible Preferred Stock 7,288,178 — Weighted average common shares outstanding and assumed conversion – diluted 21,793,582 4,214,418 Weighted average common shares outstanding and assumed conversion – diluted 21,793,582 4,214,418 Basic net income (loss) per common share $ 0.43 $ (0.84 ) Diluted net income (loss) per common share $ 0.41 $ (0.84 ) (a) – Outstanding shares of anti-dilutive securities excluded: Common stock securities 18,779,335 241,609 Convertible preferred stock securities * 12,000 — * Preferred stock is convertible into common shares on a 5.556 to 1 ratio |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with a maturity of three months or less to be cash equivalents. There were no |
Restricted Cash | Restricted Cash On August 10, 2021, the Company entered a Letter of Credit (“LOC”) agreement with WaFd bank in the amount of $0.6 million. The Company signed a lease on October 5, 2021 for a new office space. The landlord of the property, University Street Properties I, LLC, is the beneficiary of the LOC. The amount of funds that cover this LOC were moved by the WaFd bank to a controlled account on August 13, 2021. (See Note 10. Letter of Credit). |
Accounts Receivable | Accounts Receivable Accounts receivables are reported at the amount the Company expects to collect from outstanding balances. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. The Company determines if receivables are past due based on days outstanding, and amounts are written off when determined to be uncollectible by management. The allowance for doubtful accounts was $ 0 |
Property and Equipment and Depreciation | Property and Equipment and Depreciation Property and equipment are recorded at cost. Expenditures for major additions and betterments are capitalized. Maintenance and repair charges are expensed as incurred. Depreciation is computed by the straight-line method (after considering their respective estimated residual values) over the estimated useful lives: SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Construction Equipment 5 10 Leasehold Improvements The lesser of 10 years or the remaining life of the lease Furniture and Fixtures 5 Computers 3 Vehicles 10 |
Real Estate Assets | Real Estate Assets Real estate assets are recorded at cost, except when real estate assets are acquired that meet the definition of a business combination in accordance with FASB ASC 805, “Business Combinations,” where acquired assets are recorded at fair value. Interest, property taxes, insurance, and other incremental costs (including salaries) directly related to a project are capitalized during the construction period of major facilities and land improvements. The capitalization period begins when activities to develop the parcel commence and ends when the asset constructed is completed. The capitalized costs are recorded as part of the asset to which they relate and are expensed when the underlying asset is sold. The Company capitalized interest from related party borrowings of $ 1.0 1.0 2.4 2.4 A property is classified as “held for sale” when all the following criteria for a plan of sale have been met: (1) Management, having the authority to approve the action, commits to a plan to sell the property; (2) The property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (3) An active program to locate a buyer and other actions required to complete the plan to sell, have been initiated; (4) The sale of the property is probable and is expected to be completed within one year of the contract date; (5) The property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) Actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When all these criteria have been met, the property is classified as “held for sale.” In addition to the annual assessment of potential triggering events in accordance with ASC 360, the Company applies a fair value-based impairment test to the net book value of assets on an annual basis and on an interim basis if certain events or circumstances indicate that an impairment loss may have occurred. As of December 31, 2021 and December 31, 2020, the Company did not have any projects that qualified for an impairment charge. |
Revenue and Cost Recognition | Revenue and Cost Recognition ASC 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contract to provide goods or services to customers. In accordance with ASC 606, revenue is recognized when a customer obtains control of the promised good or service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods or services. The provision of ASC 606 includes a five-step process by which the Company determines revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which the Company expects to be entitled in exchange for those goods or services. ASC 606 requires the Company to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, performance obligations are satisfied. A detailed breakdown of the five-step process for the revenue recognition of Entitled Land Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a buyer to purchase the parcel of entitled land. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering entitled land to the customer, which are required to meet certain specifications outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract. The parcel is a separate performance obligation for which the specific price is in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Developed Lots Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with the buyer to purchase lots that have completed infrastructure. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering developed lots to the customer, which are required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract. All lots are a single performance obligation for the specific price in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Fee Build Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a customer to construct the required infrastructure so that houses can be developed on the lots. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering developed lots which are required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract. The nature of the industry involves a number of uncertainties that can affect the current state of the contract. Variable considerations are the estimates made due to a contract modification in the contractual service. Change orders, claims, extras, or back charges are common in contractual services activity as a form of variable consideration. If there is going to be a contract modification, judgment by management will need to be made to determine if the variable consideration is enforceable. The following factors are considered in determining if the variable consideration is enforceable: 1. The customer’s written approval of the scope of the change order; 2. Current contract language that indicates clear and enforceable entitlement relating to the change order; 3. Separate documentation for the change order costs that are identifiable and reasonable; and 4. The Company’s experience in negotiating change orders, especially as it relates to the specific type of contract and change order being evaluated. Once the Company receives a contract, it generates a budget of projected costs for the contract based on the contract price. If the scope of the contract during the contractual period needs to be modified, the Company files a change order. The Company does not continue to perform services until the change modification is agreed upon with documentation by both the Company and the customer. There are few times that claims, extras, or back charges are included in the contract. If there are multiple performance obligations to the contract, the costs must be allocated appropriately and consistently to each performance obligation. In the Company’s experience, usually only one performance obligation is stated per contract. If there are multiple services provided for one customer, the Company has a policy of splitting out the services over multiple contracts. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company uses the total costs incurred on the project relative to the total expected costs to satisfy the performance obligation. The input method involves measuring the resources consumed, labor hours expended, costs incurred, time lapsed, or machine hours used relative to the total expected inputs to the satisfaction of the performance obligation. Costs incurred prior to actual contract (i.e., design, engineering, procurement of material, etc.) should not be recognized as the Company does not have control of the good/service provided. When the estimate on a contract indicates a loss or claims against costs incurred reduce the likelihood of recoverability of such costs, the Company records the entire estimated loss in the period the loss becomes known. Project contracts typically provide for a schedule of billings or invoices to the customer based on the Company’s job to date percentage of completion of specific tasks inherent in the fulfillment of its performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, contract revenue recognized in the statement of operations can and usually does differ from amounts that can be billed or invoiced to the customer at any point during the contract. Amounts by which cumulative contract revenue recognized on a contract as of a given date exceed cumulative billings and unbilled receivables to the customer under the contract are reflected as a current asset in the Company’s balance sheet under the caption “Contract Asset, net” which is further disclosed in Note 20. Amounts by which cumulative billings to the customer under a contract as of a given date exceed cumulative contract revenue recognized on the contract would be reflected as a current liability in the Company’s balance sheet. A detailed breakdown of the five-step process for the revenue recognition of Home Revenue is as follows: 1. Identify the contract with a customer. The Company signs an agreement with a homebuyer to purchase a lot with a completed house. 2. Identify the performance obligations in the contract. Performance obligations of the Company include delivering a developed lot with a completed house to the customer, which is required to meet certain specifications that are outlined in the contract. 3. Determine the transaction price. The transaction price is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties. 4. Allocation of the transaction price to performance obligations in the contract. Each lot with a completed house is a separate performance obligation, for which the specific price in the contract is allocated. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company recognizes revenue when title is transferred. The Company does not have any further performance obligations once title is transferred. A detailed breakdown of the five-step process for the revenue recognition of Construction Materials sold to or received from contractors is as follows: 1. Identify the contract with a customer. There are no signed contracts. Each transaction is verbally agreed to with the customer. 2. Identify the performance obligations in the contract. The Company delivers or receives materials from customers based on the verbal agreement reached. 3. Determine the transaction price. The Company has a set price list for receiving approved fill materials to recycle or provides customers with a combination of said materials. 4. Allocation of the transaction price to performance obligations in the contract. There is only one performance obligation, which is to pick up or deliver the materials. The entire transaction price is therefore allocated to the performance obligation. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The performance obligation is fulfilled, and revenue is recognized when the materials have been received or delivered by the Company. Revenues from contracts with customers are summarized by category as follows for the years ended December 31: SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS Year Ended Year Ended December 31, 2021 December 31, 2020 Entitled Land $ 20,625,000 $ — Developed Lots 26,825,500 12,538,000 Fee Build 6,802,900 — Homes 17,654,600 37,276,400 Construction Materials 444,700 582,600 Total Revenue $ 72,352,700 $ 50,397,000 Disaggregation of Revenue from Contracts with Customers The following table disaggregates the Company’s revenue based on the type of sale or service and the timing of satisfaction of performance obligations for the years ended December 31, 2021 and 2020: DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS Year Ended Year Ended December 31, 2021 December 31, 2020 Performance obligations satisfied at a point in time $ 65,549,800 $ 50,397,000 Performance obligations satisfied over time 6,802,900 — Total Revenue $ 72,352,700 $ 50,397,000 |
Cost of Sales | Cost of Sales Land acquisition costs are allocated to each lot based on the size of the lot in relation to the size of the total project. Development costs and capitalized interest are allocated to lots sold based on the same criteria. Costs relating to the handling of recycled construction materials and converting items into usable construction materials for resale are charged to cost of sales as incurred. |
Advertising | Advertising Advertising expense for the years ended December 31, 2021 and 2020 was $ 0.1 0.04 |
Leases | Leases The Company adopted ASC Topic 842, Leases, as amended, on January 1, 2019. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to not separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease. The Company’s leases consist of leaseholds on office space, machinery, and equipment. The Company determines if an arrangement contains a lease at inception as defined by ASC 842. In order to meet the definition of a lease under ASC 842, the contractual arrangement must convey to us the right to control the use of an identifiable asset for a period of time in exchange for consideration. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss, credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. Management applies the criteria established under FASB Accounting for Income taxes (Topic 740) (the Update) to determine if any valuation allowances are needed each year. The Company recognizes a tax benefit for an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. There are no uncertain tax positions as of December 31, 2021 and December 31, 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On December 18, 2019, the FASB released Accounting Standards Update No. 2019-12, Income taxes (Topic 740) (the Update). The Board issued this update as part of its initiative to reduce complexity in accounting standards. The company has adopted this standard; there were no material impacts to the balance sheet, income statement, statement of cash flows, or tax footnote. In August 2020, the FASB issued Accounting Standards Update 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 on January 1, 2021. The ASU 2020-06 had an impact on the Company’s preferred stock disclosures and EPS as well as eliminating the accounting for beneficial conversion features. On May 3, 2021, the FASB released Accounting Standards Update No. 2021-04, Compensation – Earning Per Share (Topic 260), Debt - Modifications and Extinguishments (subtopic 470-50), Compensation - Stock compensation (Topic 718), Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. FASB issued this update to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example warrants) that remain equity classified after modification or exchange. The Standard is effective for fiscal years beginning after December 15, 2021. The Company does not believe the adoption will have a material impact on the Company. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying value of such assets may not be fully recoverable. Impairment is present when the sum of estimated undiscounted future cash flow expected to result from use of the assets is less than carrying value. If impairment is present, the carrying value of the impaired asset is reduced to its fair value. Fair value is determined based on discounted cash flow or appraised values, depending on the nature of the assets. As of December 31, 2021 and December 31, 2020, there were no |
Offering Costs Associated with a Public Offering | Offering Costs Associated with a Public Offering The Company complies with the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “ Expenses of Offering.” On January 15 and 20, 2021, the Company closed on a follow-on public offering and over-allotment option, respectively, of common stock. During 2020, the Company incurred approximately $ 0.1 |
RESTATEMENT (Tables)
RESTATEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
SCHEDULE OF ERROR CORRECTIONS AND PRIOR PERIOD ADJUSTMENTS | The Company restated the earnings per share for the periods presented in the consolidated statement of operations and earnings per share reconciliation table in Note 2. The following table provides the summary of restated numbers. SCHEDULE OF ERROR CORRECTIONS AND PRIOR PERIOD ADJUSTMENTS As Previously Reported Restated Net Effect Year Ended December 31, 2021 As Previously Reported Restated Net Effect CONSOLIDATED STATEMENT OF OPERATIONS Net Income (Loss) Per Share - Diluted $ 0.24 $ 0.41 $ 0.17 Weighted Average Common Shares Outstanding - Basic 14,336,789 14,336,748 (41 ) Weighted Average Common Shares Outstanding - Diluted 36,915,491 21,793,582 (15,121,909 ) NOTE 2 Earnings (Loss) Per Share Denominator: Weighted average common shares outstanding - basic 14,336,789 14,336,748 (41 ) Options 19,482 147,441 127,959 Warrants 144,456 19,426 (125,030 ) Restricted Stock Awards 29,890 1,789 (28,101 ) Convertible Preferred Stock 22,384,874 7,288,178 (15,096,696 ) Weighted average common shares outstanding and assumed conversion - diluted 36,915,491 21,793,582 (15,121,909 ) Diluted net income (loss) per common share $ 0.24 $ 0.41 $ 0.17 (a) – Outstanding shares of anti-dilutive securities excluded: Common stock securities 18,901,282 18,779,335 (121,947 ) Convertible preferred stock securities* - 12,000 12,000 * Preferred stock is convertible into common shares on a 5.556 to 1 ratio |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF STATEMENT OF SUBSIDIARIES | The consolidated financial statements include the following subsidiaries of Harbor Custom Development, Inc. as of the reporting period ending dates as follows (all entities are formed as Washington LLC’s): SCHEDULE OF STATEMENT OF SUBSIDIARIES Names Dates of Formation Attributable Interest December 31, 2021 December 31, 2020 Saylor View Estates, LLC March 30, 2014 51 % 51 % Harbor Materials, LLC* July 5, 2018 N/A 100 % Belfair Apartments, LLC December 3, 2019 100 % 100 % Pacific Ridge CMS, LLC May 24, 2021 100 % N/A Tanglewilde, LLC June 25, 2021 100 % N/A HCDI FL CONDO LLC August 3, 2021 100 % N/A HCDI Mira, LLC August 30, 2021 100 % N/A HCDI Bridgeview LLC October 28, 2021 100 % N/A HCDI Wyndstone, LLC September 15, 2021 100 % N/A HCDI Semiahmoo, LLC December 17, 2021 100 % N/A * Harbor Materials, LLC was voluntarily dissolved with the State of Washington as of January 29, 2021. |
SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS | For the years ended December 31, 2021 and 2020 when computing fair value of share-based payments, the Company has considered the following variables: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS December 31, 2021 December 31, 2020 Risk-free interest rate 0.17 0.84 0.14 1.46 Exercise price $ 2.76 5.00 $ 2.22 6.50 Expected life of grants 2.50 6.50 2.86 6.00 Expected volatility of underlying stock 42.30 56.00 32.39 51.94 Dividends 0 0 |
SCHEDULE OF NET INCOME (LOSS) PER SHARE | The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income (loss) attributable to common stockholders per common share for the years ended December 31, 2021 and 2020. SCHEDULE OF NET INCOME (LOSS) PER SHARE Year Ended December 31, 2021 Year Ended December 31, 2020 Numerator: Net income (loss) attributable to common stockholders $ 6,133,600 $ (3,532,800 ) Effect of dilutive securities: 2,724,900 — Diluted net income (loss) $ 8,858,500 $ (3,532,800 ) Denominator: Weighted average common shares outstanding - basic 14,336,748 4,214,418 Dilutive securities (a): Options 147,441 — Warrants 19,426 — Restricted Stock Awards 1,789 — Convertible Preferred Stock 7,288,178 — Weighted average common shares outstanding and assumed conversion – diluted 21,793,582 4,214,418 Weighted average common shares outstanding and assumed conversion – diluted 21,793,582 4,214,418 Basic net income (loss) per common share $ 0.43 $ (0.84 ) Diluted net income (loss) per common share $ 0.41 $ (0.84 ) (a) – Outstanding shares of anti-dilutive securities excluded: Common stock securities 18,779,335 241,609 Convertible preferred stock securities * 12,000 — * Preferred stock is convertible into common shares on a 5.556 to 1 ratio |
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES | SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES Construction Equipment 5 10 Leasehold Improvements The lesser of 10 years or the remaining life of the lease Furniture and Fixtures 5 Computers 3 Vehicles 10 |
SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS | Revenues from contracts with customers are summarized by category as follows for the years ended December 31: SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS Year Ended Year Ended December 31, 2021 December 31, 2020 Entitled Land $ 20,625,000 $ — Developed Lots 26,825,500 12,538,000 Fee Build 6,802,900 — Homes 17,654,600 37,276,400 Construction Materials 444,700 582,600 Total Revenue $ 72,352,700 $ 50,397,000 |
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS | The following table disaggregates the Company’s revenue based on the type of sale or service and the timing of satisfaction of performance obligations for the years ended December 31, 2021 and 2020: DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS Year Ended Year Ended December 31, 2021 December 31, 2020 Performance obligations satisfied at a point in time $ 65,549,800 $ 50,397,000 Performance obligations satisfied over time 6,802,900 — Total Revenue $ 72,352,700 $ 50,397,000 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment stated at cost, less accumulated depreciation and amortization, consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2021 December 31, 2020 Machinery and Equipment $ 10,577,600 $ 8,908,000 Vehicles 71,800 73,500 Furniture and Fixtures 420,300 136,300 Leasehold Improvements 81,200 7,000 Total Fixed Assets 11,150,900 9,124,800 Less Accumulated Depreciation (1,951,200 ) (948,800 ) Fixed Assets, Net $ 9,199,700 $ 8,176,000 |
REAL ESTATE (Tables)
REAL ESTATE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
SCHEDULE OF REAL ESTATE | Real Estate consisted of the following components: SCHEDULE OF REAL ESTATE December 31, 2021 December 31, 2020 Land Held for Development $ 73,524,400 $ 9,532,800 Construction in Progress 43,362,700 9,042,700 Held for Sale 5,249,000 1,794,800 Real estate $ 122,136,100 $ 20,370,300 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | Accounts payable and accrued liabilities consisted of the following: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES December 31, 2021 December 31, 2020 Trade Accounts Payable $ 5,558,400 $ 2,358,800 Income Tax Payable 2,415,900 — Accrued Compensation, Bonuses, and Benefits 1,071,700 108,900 Accrued Quarry Reclamation Costs 500,000 124,500 Retainage Payable 445,800 — Other Accruals 671,000 107,800 Accounts Payable and Accrued Expenses $ 10,662,800 $ 2,700,000 |
EQUIPMENT LOANS (Tables)
EQUIPMENT LOANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF EQUIPMENT LOANS | Equipment loans consists of the following: SCHEDULE OF EQUIPMENT LOANS December 31, 2021 December 31, 2020 Various notes payable to banks and financial institutions with interest rates varying from 0.00 13.89 400 11,600 $ 5,268,500 $ 5,595,500 Book value of collateralized equipment: $ 7,229,000 $ 6,475,600 |
SCHEDULE OF FUTURE EQUIPMENT LOAN MATURITIES | Future equipment loan maturities are as follows: SCHEDULE OF FUTURE EQUIPMENT LOAN MATURITIES For the year ended December 31: 2021 2022 $ 1,887,800 2023 1,738,300 2024 1,491,700 2025 150,700 2026 — Equipment loan $ 5,268,500 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
SCHEDULE OF COMPONENTS OF LEASE EXPENSE | The components of lease expense were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE Year Ended Year Ended December 31, 2021 December 31, 2020 Finance leases: Depreciation of assets $ 152,700 $ 88,000 Interest on lease liabilities 43,400 38,000 Operating lease expense 550,400 328,300 Total net lease cost $ 746,500 $ 454,300 |
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES | Supplemental balance sheet information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES December 31, 2021 December 31, 2020 Operating leases: Operating lease ROU assets $ 3,429,700 $ 873,800 Total ROU Liabilities $ 3,484,400 $ 841,700 Finance leases: Property and equipment, at cost $ 1,365,500 $ 1,411,100 Less: Accumulated depreciation 293,100 140,400 Property and equipment, net $ 1,072,400 $ 1,270,700 Total Finance lease liabilities $ 543,400 $ 999,400 |
SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES | Supplemental cash flow and other information related to leases was as follows: SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES Year Ended Year Ended December 31, 2021 December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (301,100 ) $ (273,800 ) Financing cash flows from finance leases (356,900 ) (564,400 ) Assets obtained in exchange for lease liabilities: Operating leases $ 2,943,800 $ — Finance leases — 1,043,100 Weighted average remaining lease term (in years): Operating leases 8.6 3.2 Finance leases 2.7 3.1 Weighted average discount rate: Operating leases 4.7 % 9.9 % Finance leases 4.8 % 5.2 % |
SCHEDULE OF MINIMUM LEASE PAYMENTS | The minimum lease payments under the terms of the leases are as follows for the years ended December 31: SCHEDULE OF MINIMUM LEASE PAYMENTS Operating Leases Finance Leases Total 2022 $ 611,700 $ 268,900 $ 880,600 2023 542,000 238,600 780,600 2024 433,300 74,900 508,200 2025 328,900 — 328,900 2026 338,800 — 338,800 Thereafter 1,952,600 — 1,952,600 Total lease payments $ 4,207,300 $ 582,400 $ 4,789,700 Less amount of discount/interest (722,900 ) (39,000 ) (761,900 ) $ 3,484,400 $ 543,400 $ 4,027,800 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS AND LIABILITIES | The components of net deferred tax assets and liabilities at December 31, 2021 and 2020 are set forth below: SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS AND LIABILITIES December 31, 2021 December 31, 2020 Deferred tax assets: Federal NOL Carryforward $ 1,926,000 $ 1,794,200 UNICAP 598,400 193,000 Lease Liability 736,400 176,700 Stock Based compensation 54,900 9,200 Investments 7,000 57,100 Total assets $ 3,322,700 $ 2,230,200 Deferred tax liabilities: Property and equipment $ 1,948,900 $ 1,705,400 Right of use assets 724,800 183,500 Total liabilities $ 2,673,700 $ 1,888,900 Subtotal deferred tax assets 649,000 341,300 Valuation Allowance — (341,300 ) Net deferred tax assets $ 649,000 $ — |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE | The components of income tax expense and the effective tax rates for the years ended December 31, 2021 and 2020 are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE Year Ended Year Ended December 31, 2021 December 31, 2020 Current: Federal $ 2,394,500 $ — State 21,400 — Total Current 2,415,900 — Deferred: Federal (649,000 ) (224,500 ) State — — Total Deferred (649,000 ) (224,500 ) Valuation Allowance — 341,300 Total Income Tax Expense $ 1,766,900 $ 116,800 |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | The expected tax rate differs from the U.S. Federal statutory rate as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2021 2020 US Federal statutory rate 21.0 % 21.0 % Change in Federal Valuation Allowance (3.1 )% (9.4 )% Tax Credits (2.6 )% — % Incentive Stock Options 0.5 % — % Adjustment of Deferred Tax 0.2 % (16.3 )% State Taxes 0.2 % — % Change in Tax Rate 0.1 % — % PPP Loan forgiveness — % 3.2 % Non-controlling Interest — % (1.3 )% Other 0.1 % (0.4 )% Effective Tax Rate 16.4 % (3.2 )% |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
SCHEDULE OF SHARE-BASED PAYMENT ARRANGEMENT, OPTION, ACTIVITY | The following is a summary of the Company’s option activity: SCHEDULE OF SHARE-BASED PAYMENT ARRANGEMENT, OPTION, ACTIVITY Options Weighted Average Exercise Price Outstanding – December 31, 2019 264,426 $ 0.41 Exercisable – December 31, 2019 117,218 $ 0.42 Granted 213,784 $ 4.79 Exercised — $ — Forfeited/Cancelled (36,038 ) $ 0.40 Outstanding – December 31, 2020 442,172 $ 2.53 Exercisable – December 31, 2020 219,085 $ 1.31 Granted 240,000 $ 3.23 Exercised (45,046 ) $ 0.40 Forfeited/Cancelled (173,875 ) $ 3.27 Outstanding – December 31, 2021 463,251 $ 2.82 Exercisable – December 31, 2021 343,724 $ 2.77 |
SCHEDULE OF SHARE-BASED PAYMENT ARRANGEMENT, OPTION, EXERCISE PRICE RANGE | SCHEDULE OF SHARE-BASED PAYMENT ARRANGEMENT, OPTION, EXERCISE PRICE RANGE Options Outstanding Options Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.40 6.50 463,251 6.23 $ 2.82 343,724 $ 2.77 |
SCHEDULE OF RESTRICTED STOCK UNIT ACTIVITY | The following is a summary of the Company’s restricted stock activity: SCHEDULE OF RESTRICTED STOCK UNIT ACTIVITY Restricted Stock Weighted Average Exercise Price Non Vested Balance - December 31, 2019 — $ — Granted 34,000 $ 4.53 Vested 8,500 $ 4.53 Forfeited/Cancelled — $ — Non Vested Balance - December 31, 2020 25,500 $ 4.53 Granted 180,000 $ 2.58 Vested 60,500 $ 3.71 Forfeited/Cancelled — $ — Non Vested Balance - December 31, 2021 145,000 $ 2.45 |
Common Stock Warrant [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
SCHEDULE OF WARRANTS ACTIVITY | The following is a summary of the Company’s Common Stock Warrant activity: SCHEDULE OF WARRANTS ACTIVITY Warrants Weighted Average Exercise Price Outstanding – December 31, 2019 22,524 $ 0.40 Exercisable – December 31, 2019 22,524 $ 0.40 Granted 88,335 $ 7.5 Exercised — $ — Forfeited/Cancelled — $ — Outstanding – December 31, 2020 110,859 $ 6.06 Exercisable – December 31, 2020 22,524 $ 0.40 Granted 18,376,000 $ 3.45 Exercised — $ — Forfeited/Cancelled — $ — Outstanding – December 31, 2021 18,486,859 $ 3.46 Exercisable – December 31, 2021 18,486,859 $ 3.46 |
SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE | SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.40 7.50 18,486,859 4.68 $ 3.46 18,486,859 $ 3.46 |
Preferred Stock Warrant [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
SCHEDULE OF WARRANTS ACTIVITY | The following is a summary of the Company’s Preferred Stock Warrant activity: SCHEDULE OF WARRANTS ACTIVITY Warrants Weighted Average Exercise Price Outstanding – December 31, 2019 — $ — Exercisable – December 31, 2019 — $ — Granted — $ — Exercised — $ — Forfeited/Cancelled — $ — Outstanding – December 31, 2020 — $ — Exercisable – December 31, 2020 — $ — Granted 12,000 $ 24.97 Exercised — $ — Forfeited/Cancelled — $ — Outstanding – December 31, 2021 12,000 $ 24.97 Exercisable – December 31, 2021 12,000 $ 24.97 |
SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE | SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 24.97 12,000 4.44 $ 24.97 12,000 $ 24.97 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF COMPANY’S REPORTABLE SEGMENT | The reporting segments follow the same accounting policies used in the preparation of the Company’s consolidated financial statements. The following represents selected information for the Company’s reportable segments for the years ended December 31, 2021 and 2020. Immaterial construction materials revenues and costs are included in the homes segment. SCHEDULE OF COMPANY’S REPORTABLE SEGMENT Year Ended December 31, 2021 Year Ended December 31, 2020 Revenue by segment Homes $ 17,654,600 $ 37,276,400 Developed lots 26,825,500 12,538,000 Entitled land 20,625,000 — Fee Build 6,802,900 — Other 444,700 582,600 Total Revenue $ 72,352,700 $ 50,397,000 Cost of goods sold by segment Homes $ 15,168,500 $ 35,140,000 Developed lots 15,885,300 13,253,800 Entitled land 11,689,100 — Fee Build 5,991,300 — Other 1,685,200 — Cost of goods sold by segment $ 50,419,400 $ 48,393,800 Gross profit (loss) by segment Homes $ 2,486,100 $ 2,136,400 Developed lots 10,940,200 (715,800 ) Entitled land 8,935,900 — Fee Build 811,600 — Other (1,240,500 ) 582,600 Gross profit (loss) by segment $ 21,933,300 $ 2,003,200 |
UNCOMPLETED CONTRACTS (Tables)
UNCOMPLETED CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
SUMMARY OF COST, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS | Costs, estimated earnings and billings on uncompleted contracts are summarized as follows at December 31, 2021 and December 31, 2020: SUMMARY OF COST, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS December 31, 2021 December 31, 2020 Costs incurred on uncompleted contracts $ 5,991,300 $ — Estimated earnings 811,600 — Costs and estimated earnings on uncompleted contracts 6,802,900 — Billings to date 4,635,700 — Costs and estimated earnings in excess of billings on uncompleted contracts 2,167,200 — Billings in excess of costs and estimated earnings on uncompleted contracts — — Total earnings from completed and uncompleted contracts $ 2,167,200 $ — |
SCHEDULE OF ERROR CORRECTIONS A
SCHEDULE OF ERROR CORRECTIONS AND PRIOR PERIOD ADJUSTMENTS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Diluted net income (loss) per common share | $ 0.41 | $ (0.84) |
Weighted average common shares outstanding - basic | 14,336,748 | 4,214,418 |
Weighted average common shares outstanding and assumed conversion - diluted | 21,793,582 | 4,214,418 |
Options | 147,441 | |
Warrants | 19,426 | |
Restricted Stock Awards | 1,789 | |
Convertible Preferred Stock | 7,288,178 | |
Common stock securities | 18,779,335 | 241,609 |
Convertible preferred stock securities* | 12,000 | |
Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Diluted net income (loss) per common share | $ 0.24 | |
Weighted average common shares outstanding - basic | 14,336,789 | |
Weighted average common shares outstanding and assumed conversion - diluted | 36,915,491 | |
Options | 19,482 | |
Warrants | 144,456 | |
Restricted Stock Awards | 29,890 | |
Convertible Preferred Stock | 22,384,874 | |
Common stock securities | 18,901,282 | |
Convertible preferred stock securities* | ||
Revision of Prior Period, Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Diluted net income (loss) per common share | $ 0.17 | |
Weighted average common shares outstanding - basic | (41) | |
Weighted average common shares outstanding and assumed conversion - diluted | (15,121,909) | |
Options | 127,959 | |
Warrants | (125,030) | |
Restricted Stock Awards | (28,101) | |
Convertible Preferred Stock | (15,096,696) | |
Common stock securities | (121,947) | |
Convertible preferred stock securities* | 12,000 |
SCHEDULE OF ERROR CORRECTIONS_2
SCHEDULE OF ERROR CORRECTIONS AND PRIOR PERIOD ADJUSTMENTS (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Preferred Stock, Convertible, Terms | 5.556 to 1 ratio |
SCHEDULE OF STATEMENT OF SUBSID
SCHEDULE OF STATEMENT OF SUBSIDIARIES (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Saylor View Estates, LLC [Member] | |||
Dates of Formation | Mar. 30, 2014 | ||
Attributable Interest | 51.00% | 51.00% | |
Harbor Materials LLC [Member] | |||
Dates of Formation | [1] | Jul. 5, 2018 | |
Attributable Interest | [1] | 100.00% | |
Belfair Apartments, LLC [Member] | |||
Dates of Formation | Dec. 3, 2019 | ||
Attributable Interest | 100.00% | 100.00% | |
Pacific Ridge CMS LLC [Member] | |||
Dates of Formation | May 24, 2021 | ||
Attributable Interest | 100.00% | ||
Tangle Wilde LLC [Member] | |||
Dates of Formation | Jun. 25, 2021 | ||
Attributable Interest | 100.00% | ||
HCD IFL CONDO LLC [Member] | |||
Dates of Formation | Aug. 3, 2021 | ||
Attributable Interest | 100.00% | ||
HCDI Mira LLC [Member] | |||
Dates of Formation | Aug. 30, 2021 | ||
Attributable Interest | 100.00% | ||
HCDI Bridgeview LLC [Member] | |||
Dates of Formation | Oct. 28, 2021 | ||
Attributable Interest | 100.00% | ||
HCDI Wyndstone LLC [Member] | |||
Dates of Formation | Sep. 15, 2021 | ||
Attributable Interest | 100.00% | ||
HCDI Semiahmoo, LLC [Member] | |||
Dates of Formation | Dec. 17, 2021 | ||
Attributable Interest | 100.00% | ||
[1] | Harbor Materials, LLC was voluntarily dissolved with the State of Washington as of January 29, 2021. |
SCHEDULE OF FAIR VALUE ASSUMPTI
SCHEDULE OF FAIR VALUE ASSUMPTIONS OF SHARE-BASED PAYMENTS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Dividends | 0.00% | 0.00% |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Risk-free interest rate | 0.17% | 0.14% |
Exercise price | $ 2.76 | $ 2.22 |
Expected life of grants | 2 years 6 months | 2 years 10 months 9 days |
Expected volatility of underlying stock | 42.30% | 32.39% |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Risk-free interest rate | 0.84% | 1.46% |
Exercise price | $ 5 | $ 6.50 |
Expected life of grants | 6 years 6 months | 6 years |
Expected volatility of underlying stock | 56.00% | 51.94% |
SCHEDULE OF NET INCOME (LOSS) P
SCHEDULE OF NET INCOME (LOSS) PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Net income (loss) attributable to common stockholders | $ 6,133,600 | $ (3,532,800) |
Effect of dilutive securities: | 2,724,900 | |
Diluted net income (loss) | $ 8,858,500 | $ (3,532,800) |
Weighted average common shares outstanding - basic | 14,336,748 | 4,214,418 |
Options | 147,441 | |
Warrants | 19,426 | |
Restricted Stock Awards | 1,789 | |
Convertible Preferred Stock | 7,288,178 | |
Weighted average common shares outstanding and assumed conversion – diluted | 21,793,582 | 4,214,418 |
Basic net income (loss) per common share | $ 0.43 | $ (0.84) |
Diluted net income (loss) per common share | $ 0.41 | $ (0.84) |
Common stock securities | 18,779,335 | 241,609 |
Convertible preferred stock securities* | 12,000 |
SCHEDULE OF NET INCOME (LOSS)_2
SCHEDULE OF NET INCOME (LOSS) PER SHARE (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Preferred Stock, Convertible, Terms | 5.556 to 1 ratio |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Construction Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 5 years |
Construction Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 10 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives, description | The lesser of 10 years or the remaining life of the lease |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 5 years |
Computers [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 3 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 10 years |
SCHEDULE OF REVENUES FROM CONTR
SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | ||
Total Revenue | $ 72,352,700 | $ 50,397,000 |
Entitled Land [Member] | ||
Product Information [Line Items] | ||
Total Revenue | 20,625,000 | |
Developed Lots [Member] | ||
Product Information [Line Items] | ||
Total Revenue | 26,825,500 | 12,538,000 |
Fee Build [Member] | ||
Product Information [Line Items] | ||
Total Revenue | 6,802,900 | |
Home Building [Member] | ||
Product Information [Line Items] | ||
Total Revenue | 17,654,600 | 37,276,400 |
Construction Materials [Member] | ||
Product Information [Line Items] | ||
Total Revenue | $ 444,700 | $ 582,600 |
DISAGGREGATION OF REVENUE FROM
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 72,352,700 | $ 50,397,000 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 65,549,800 | 50,397,000 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 6,802,900 |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 03, 2020 | Nov. 19, 2018 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Non-controlling interest | $ 1,291,600 | $ 1,289,900 | ||
Stockholders' Equity, Reverse Stock Split | 1-for-2.22 | |||
Preferred stock, dividend rate, percentage | 8.00% | |||
Cash Equivalents, at Carrying Value | $ 0 | 0 | ||
Allowance for doubtful accounts | 0 | 0 | ||
Interest Costs Capitalized | 1,000,000 | 1,000,000 | ||
Capitalized interest from third-party borrowings | 2,400,000 | 2,400,000 | ||
Advertising expense | 100,000 | 40,000 | ||
Impairment losses | 0 | 0 | ||
Deferred Offering Costs | $ 65,100 | |||
2018 Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Reserved shares of common stock issuance | 675,676 | |||
2020 Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Reserved shares of common stock issuance | 700,000 |
CONCENTRATION, RISKS, AND UNC_2
CONCENTRATION, RISKS, AND UNCERTAINTIES (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | ||
Uninsured cash | $ 24.5 | $ 2.1 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Lennar NorthwestInc [Member] | Fee Build [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 100.00% | 0.00% |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Homes [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 0.00% | 0.00% |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Developed Lots [Member] | Lennar NorthwestInc [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 26.00% | 100.00% |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Developed Lots [Member] | Modern Homestead LLC [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 23.00% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Developed Lots [Member] | Mainvue WA LLC [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 18.00% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Developed Lots [Member] | Century Communities of Washington, LLC [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 14.00% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Developed Lots [Member] | Noffke Homes Horizon at Semiahmoo LLC [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 14.00% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Entitled Land [Member] | Lennar NorthwestInc [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 51.00% | 0.00% |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Entitled Land [Member] | AG Essential Housing Multi State 1, LLC [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 45.00% |
NOTES RECEIVABLE (Details Narra
NOTES RECEIVABLE (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, face amount | $ 2,000,000 | |
Financing receivable outstanding | 2,000,000 | |
Broadmoor Commons LLC [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, face amount | $ 500,000 | |
Financing receivable, interest rate | 8.00% | |
Modern Homestead LLC [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, face amount | $ 1,500,000 | |
Financing receivable, interest rate | 9.00% |
SCHEDULE OF PROPERTY AND EQUI_2
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | $ 11,150,900 | $ 9,124,800 |
Less Accumulated Depreciation | (1,951,200) | (948,800) |
Fixed Assets, Net | 9,199,700 | 8,176,000 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | 10,577,600 | 8,908,000 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | 71,800 | 73,500 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | 420,300 | 136,300 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | $ 81,200 | $ 7,000 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,084,200 | $ 619,800 |
SCHEDULE OF REAL ESTATE (Detail
SCHEDULE OF REAL ESTATE (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
Land Held for Development | $ 73,524,400 | $ 9,532,800 |
Construction in Progress | 43,362,700 | 9,042,700 |
Held for Sale | 5,249,000 | 1,794,800 |
Real estate | $ 122,136,100 | $ 20,370,300 |
SCHEDULE OF ACCOUNTS PAYABLE AN
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Trade Accounts Payable | $ 5,558,400 | $ 2,358,800 |
Income Tax Payable | 2,415,900 | |
Accrued Compensation, Bonuses, and Benefits | 1,071,700 | 108,900 |
Accrued Quarry Reclamation Costs | 500,000 | 124,500 |
Retainage Payable | 445,800 | |
Other Accruals | 671,000 | 107,800 |
Accounts Payable and Accrued Expenses | $ 10,662,800 | $ 2,700,000 |
SCHEDULE OF EQUIPMENT LOANS (De
SCHEDULE OF EQUIPMENT LOANS (Details) - Notes Payable to Banks [Member] - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Various notes payable to banks and financial institutions with interest rates varying from 0.00% to 13.89%, collateralized by equipment with monthly payments ranging from $400 to $11,600 through 2025: | $ 5,268,500 | $ 5,595,500 |
Book value of collateralized equipment: | $ 7,229,000 | $ 6,475,600 |
SCHEDULE OF EQUIPMENT LOANS (_2
SCHEDULE OF EQUIPMENT LOANS (Details) (Parenthetical) - Notes Payable to Banks [Member] | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate (in percent) | 0.00% |
Debt instrument, periodic payment | $ 40,000 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate (in percent) | 13.89% |
Debt instrument, periodic payment | $ 1,160,000 |
SCHEDULE OF FUTURE EQUIPMENT LO
SCHEDULE OF FUTURE EQUIPMENT LOAN MATURITIES (Details) - Notes Payable to Banks [Member] - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
2022 | $ 1,887,800 | |
2023 | 1,738,300 | |
2024 | 1,491,700 | |
2025 | 150,700 | |
2026 | ||
Equipment loan | $ 5,268,500 | $ 5,595,500 |
CONSTRUCTION LOANS (Details Nar
CONSTRUCTION LOANS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Short-Term Debt [Line Items] | ||
Debt instrument face amount | $ 39,400,000 | $ 10,100,000 |
Book value of collateralized real estate | $ 122,136,100 | $ 20,370,300 |
Construction Loans [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument term | 1 year | |
Construction Loans [Member] | Minimum [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate percentage | 5.00% | |
Construction Loans [Member] | Maximum [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate percentage | 39.00% |
LETTER OF CREDIT (Details Narra
LETTER OF CREDIT (Details Narrative) - Letter of Credit Agreement [Member] $ in Millions | Aug. 10, 2021USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Long-term Line of Credit | $ 0.6 |
Expiration date | Feb. 1, 2032 |
Prime Rate [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Basis spread on variable rate | 1.00% |
NOTE PAYABLE D&O INSURANCE (Det
NOTE PAYABLE D&O INSURANCE (Details Narrative) - USD ($) | Aug. 28, 2021 | Aug. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Malpractice Insurance [Line Items] | ||||
Note Payable D&O Insurance | $ 903,800 | $ 741,200 | ||
Directors and Officers Liability Insurance [Member] | ||||
Malpractice Insurance [Line Items] | ||||
Payment to acquire insurance | $ 1,500,000 | $ 1,500,000 | ||
Down payment for insurance | 100,000 | 300,000 | ||
Insurance payable | $ 1,400,000 | $ 1,200,000 | ||
Debt instrument interest rate | 4.42% | 4.74% | ||
Note Payable D&O Insurance | $ 900,000 | $ 700,000 |
NOTE PAYABLE PPP (Details Narra
NOTE PAYABLE PPP (Details Narrative) - USD ($) | Feb. 01, 2021 | Nov. 09, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 11, 2020 |
Short-Term Debt [Line Items] | |||||
Debt instrument face amount | $ 39,400,000 | $ 10,100,000 | |||
Paycheck Protection Program Loan [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt instrument face amount | $ 0 | $ 20,000 | $ 600,000 | ||
Interest rate percentage | 1.00% | ||||
Debt forgiveness | $ 10,000 | $ 600,000 |
DEFINED CONTRIBUTION PLAN (Deta
DEFINED CONTRIBUTION PLAN (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
401 (k) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contribution to defined contribution plan | $ 0.1 | $ 0.1 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | Dec. 22, 2021USD ($) | Dec. 15, 2021USD ($) | Dec. 02, 2021USD ($)a | Sep. 17, 2020USD ($)a | Jun. 15, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Product Liability Contingency [Line Items] | |||||||
Payment to acquire property, plant and equipment | $ 745,600 | $ 408,000 | |||||
Purchase and Sale Agreement [Member] | East Bremerton, Washington [Member] | |||||||
Product Liability Contingency [Line Items] | |||||||
Payment to acquire property, plant and equipment | $ 2,000,000 | ||||||
Purchase and Sale Agreement [Member] | Port Orchard, Washington [Member] | |||||||
Product Liability Contingency [Line Items] | |||||||
Payment to acquire property, plant and equipment | $ 1,500,000 | ||||||
Area of land | a | 9.6 | ||||||
Purchase and Sale Agreement [Member] | Blaine Washington [Member] | |||||||
Product Liability Contingency [Line Items] | |||||||
Payment to acquire property, plant and equipment | $ 14,000,000 | ||||||
Area of land | a | 438 | ||||||
Purchase and Sale Agreement [Member] | Poulsbo Washington [Member] | |||||||
Product Liability Contingency [Line Items] | |||||||
Payment to acquire property, plant and equipment | $ 2,900,000 | ||||||
Purchase and Sale Agreement [Member] | Hudson Florida [Member] | |||||||
Product Liability Contingency [Line Items] | |||||||
Payment to acquire property, plant and equipment | $ 7,400,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Sep. 02, 2020 | Aug. 13, 2020 | May 31, 2020 | Apr. 19, 2019 | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||||||
Debt discounts | $ 4,400,000 | $ 500,000 | ||||
Interest expense | 249,300 | 382,900 | ||||
Debt instrument face amount | 39,400,000 | 10,100,000 | ||||
Payment to acquire property | $ 745,600 | 408,000 | ||||
Olympic Views, LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payment to acquire property | $ 3,400,000 | |||||
Olympic Views, LLC [Member] | Chief Executive Officer and President [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 50.00% | |||||
SGRE, LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 100.00% | |||||
Percentage of commission payable | 2500.00% | |||||
Payments for Commissions | $ 10,000 | 0 | ||||
Commission expense | 100,000 | 100,000 | ||||
Richard Schmidktke [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Fees payable | 0 | 1,000 | ||||
Accounting expenses | $ 1,000 | 50,000 | ||||
Construction Loans [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt term | 1 year | |||||
Construction Loans [Member] | Minimum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument interest rate percentage | 5.00% | |||||
Construction Loans [Member] | Maximum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument interest rate percentage | 39.00% | |||||
Construction Loans [Member] | Sound Equity, LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt term | 1 year | |||||
Loan origination fees | $ 600,000 | 400,000 | ||||
Debt discounts | 200,000 | 200,000 | ||||
Prepaid interest | 1,400,000 | 700,000 | ||||
Prepaid interest reserve | 900,000 | 500,000 | ||||
Outstanding loan balances | $ 14,500,000 | 6,400,000 | ||||
Construction Loans [Member] | Sound Equity, LLC [Member] | Minimum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument interest rate percentage | 7.99% | |||||
Construction Loans [Member] | Sound Equity, LLC [Member] | Maximum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument interest rate percentage | 12.00% | |||||
Construction Loans [Member] | Curb Funding, LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt term | 1 year | |||||
Debt instrument interest rate percentage | 12.00% | |||||
Outstanding loan balances | $ 0 | 100,000 | ||||
Ownership percentage | 100.00% | |||||
Debt instrument face amount | $ 0 | 4,000 | ||||
Debt discounts | 0 | 1,000 | ||||
Interest expense | 0 | 3,000 | ||||
Construction Loans [Member] | Olympic Views, LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument interest rate percentage | 12.00% | |||||
Outstanding loan balances | 0 | 0 | ||||
Ownership percentage | 50.00% | |||||
Interest expense | $ 0 | $ 20,000 | ||||
Debt instrument face amount | $ 400,000 | |||||
Debt Instrument, Maturity Date | Apr. 19, 2020 | |||||
Accrued interest | $ 100,000 | |||||
Share issued price per share | $ 6 | |||||
Stock issued during period shares | 82,826 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Depreciation of assets | $ 152,700 | $ 88,000 |
Interest on lease liabilities | 43,400 | 38,000 |
Operating lease expense | 550,400 | 328,300 |
Total net lease cost | $ 746,500 | $ 454,300 |
SCHEDULE OF SUPPLEMENTAL BALANC
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases | ||
Operating lease ROU assets | $ 3,429,700 | $ 873,800 |
Total ROU Liabilities | 3,484,400 | 841,700 |
Property and equipment, at cost | 1,365,500 | 1,411,100 |
Less: Accumulated depreciation | 293,100 | 140,400 |
Property and equipment, net | 1,072,400 | 1,270,700 |
Total Finance lease liabilities | $ 543,400 | $ 999,400 |
SUPPLEMENTAL CASH FLOW AND OTHE
SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Operating cash flows from operating leases | $ (301,100) | $ (273,800) |
Financing cash flows from finance leases | (356,900) | (564,400) |
Operating leases | 2,943,800 | |
Finance leases | $ 1,043,100 | |
Operating leases term | 8 years 7 months 6 days | 3 years 2 months 12 days |
Finance leases term | 2 years 8 months 12 days | 3 years 1 month 6 days |
Operating leases discount rate | 4.70% | 9.90% |
Finances leases discount rate | 4.80% | 5.20% |
SCHEDULE OF MINIMUM LEASE PAYME
SCHEDULE OF MINIMUM LEASE PAYMENTS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases | ||
2022 | $ 611,700 | |
2022 | 268,900 | |
2022 | 880,600 | |
2023 | 542,000 | |
2023 | 23,860,000 | |
2023 | 780,600 | |
2024 | 433,300 | |
2024 | 74,900 | |
2024 | 508,200 | |
2025 | 328,900 | |
2025 | ||
2025 | 328,900 | |
2026 | 338,800 | |
2026 | ||
2026 | 338,800 | |
Thereafter | 1,952,600 | |
Thereafter | ||
Thereafter | 1,952,600 | |
Total lease payments | 4,207,300 | |
Total lease payments | 582,400 | |
Total lease payments | 4,789,700 | |
Less amount of discount/interest | (722,900) | |
Finance Leases | (39,000) | |
Less amount of discount/interest | (761,900) | |
Operating lease liability | 3,484,400 | $ 841,700 |
Finance Leases Liability | 543,400 | $ 999,400 |
Total lease | $ 4,027,800 |
LEASES (Details Narrative)
LEASES (Details Narrative) | Dec. 31, 2021 |
Minimum [Member] | |
Operating lease, renewal term | 3 years |
Maximum [Member] | |
Operating lease, renewal term | 5 years |
SCHEDULE OF COMPONENTS OF NET D
SCHEDULE OF COMPONENTS OF NET DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Federal NOL Carryforward | $ 1,926,000 | $ 1,794,200 |
UNICAP | 598,400 | 193,000 |
Lease Liability | 736,400 | 176,700 |
Stock Based compensation | 54,900 | 9,200 |
Investments | 7,000 | 57,100 |
Total assets | 3,322,700 | 2,230,200 |
Property and equipment | 1,948,900 | 1,705,400 |
Right of use assets | 724,800 | 183,500 |
Total liabilities | 2,673,700 | 1,888,900 |
Subtotal deferred tax assets | 649,000 | 341,300 |
Valuation Allowance | (341,300) | |
Net deferred tax assets | $ 649,000 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal | $ 2,394,500 | |
State | 21,400 | |
Total Current | 2,415,900 | |
Federal | (649,000) | (224,500) |
State | ||
Total Deferred | (649,000) | (224,500) |
Valuation Allowance | 341,300 | |
Total Income Tax Expense | $ 1,766,900 | $ 116,800 |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
US Federal statutory rate | 21.00% | 21.00% |
Change in Federal Valuation Allowance | (3.10%) | (9.40%) |
Tax Credits | (2.60%) | |
Incentive Stock Options | 0.50% | |
Adjustment of Deferred Tax | 0.20% | (16.30%) |
State Taxes | 0.20% | |
Change in Tax Rate | 0.10% | |
PPP Loan forgiveness | 3.20% | |
Non-controlling Interest | (1.30%) | |
Other | 0.10% | (0.40%) |
Effective Tax Rate | 16.40% | (3.20%) |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Valuation allowance, deferred tax asset, decrease, amount | $ 0.3 |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 9.2 |
SCHEDULE OF SHARE-BASED PAYMENT
SCHEDULE OF SHARE-BASED PAYMENT ARRANGEMENT, OPTION, ACTIVITY (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Outstanding, beginning balance (in shares) | 442,172 | 264,426 |
Outstanding, beginning balance (in dollars per share) | $ 2.53 | $ 0.41 |
Exercisable (in shares) beinning | 219,085 | 117,218 |
Exercisable (in dollars per share) beinning | $ 1.31 | $ 0.42 |
Granted (in shares) | 240,000 | 213,784 |
Granted (in dollars per share) | $ 3.23 | $ 4.79 |
Exercised (in shares) | (45,046) | |
Exercised (in dollars per share) | $ 0.40 | |
Forfeited/Cancelled (in shares) | (173,875) | (36,038) |
Forfeited/Cancelled (in dollars per share) | $ 3.27 | $ 0.40 |
Outstanding, ending balance (in shares) | 463,251 | 442,172 |
Outstanding, ending balance (in dollars per share) | $ 2.82 | $ 2.53 |
Exercisable (in shares) ending | 343,724 | 219,085 |
Exercisable (in dollars per share) ending | $ 2.77 | $ 1.31 |
SCHEDULE OF SHARE-BASED PAYME_2
SCHEDULE OF SHARE-BASED PAYMENT ARRANGEMENT, OPTION, EXERCISE PRICE RANGE (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Equity [Abstract] | |
Exercise price range, lower range limit (in dollars per share) | $ 0.40 |
Exercise price range, upper range limit (in dollars per share) | $ 6.50 |
Number of option outstanding (in shares) | shares | 463,251 |
Weighted average remaining contractual life (in years) | 6 years 2 months 23 days |
Weighted average exercise price (in dollars per share) | $ 2.82 |
Number of option exercisable (in shares) | shares | 343,724 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.77 |
SCHEDULE OF WARRANTS ACTIVITY (
SCHEDULE OF WARRANTS ACTIVITY (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Common Stock Warrant [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Outstanding, Beginning | 110,859 | 22,524 |
Weighted Average Exercise Price, Outstanding, Beginning | $ 6.06 | $ 0.40 |
Warrants Exercisable, Beginning | 22,524 | 22,524 |
Weighted Average Exercise Price, Exercisable Beginning | $ 0.40 | $ 0.40 |
Warrants, Granted | 18,376,000 | 88,335 |
Weighted Average Exercise Price, Granted | $ 3.45 | $ 7.5 |
Warrants, Exercised | ||
Weighted Average Exercise Price, Exercised | ||
Warrants, Forfeited/Cancelled | ||
Weighted Average Exercise Price, Forfeited/Cancelled | ||
Outstanding, Ending | 18,486,859 | 110,859 |
Weighted Average Exercise Price, Outstanding, Ending | $ 3.46 | $ 6.06 |
Warrants Exercisable, Ending | 18,486,859 | 22,524 |
Weighted Average Exercise Price, Exercisable, Ending | $ 3.46 | $ 0.40 |
Preferred Stock Warrant [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Outstanding, Beginning | ||
Weighted Average Exercise Price, Outstanding, Beginning | ||
Warrants Exercisable, Beginning | ||
Weighted Average Exercise Price, Exercisable Beginning | ||
Warrants, Granted | 12,000 | |
Weighted Average Exercise Price, Granted | $ 24.97 | |
Warrants, Exercised | ||
Weighted Average Exercise Price, Exercised | ||
Warrants, Forfeited/Cancelled | ||
Weighted Average Exercise Price, Forfeited/Cancelled | ||
Outstanding, Ending | 12,000 | |
Weighted Average Exercise Price, Outstanding, Ending | $ 24.97 | |
Warrants Exercisable, Ending | 12,000 | |
Weighted Average Exercise Price, Exercisable, Ending | $ 24.97 |
SCHEDULE OF WARRANTS OUTSTANDIN
SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Common Stock Warrant [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Number of Warrants Outstanding | shares | 18,486,859 |
Weighed Average Remaining Contractual Life (in years) | 4 years 8 months 4 days |
Weighted Average Exercise Price | $ 3.46 |
Number of Warrants Exercisable | shares | 18,486,859 |
Warrants Exercisable, Weighted Average Exercise Price | $ 3.46 |
Common Stock Warrant [Member] | Minimum [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Weighted Average Exercise Price, Exercisable | 0.40 |
Common Stock Warrant [Member] | Maximum [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Weighted Average Exercise Price, Exercisable | 7.50 |
Preferred Stock Warrant [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Weighted Average Exercise Price, Exercisable | $ 24.97 |
Number of Warrants Outstanding | shares | 12,000 |
Weighed Average Remaining Contractual Life (in years) | 4 years 5 months 8 days |
Weighted Average Exercise Price | $ 24.97 |
Number of Warrants Exercisable | shares | 12,000 |
Warrants Exercisable, Weighted Average Exercise Price | $ 24.97 |
SCHEDULE OF RESTRICTED STOCK UN
SCHEDULE OF RESTRICTED STOCK UNIT ACTIVITY (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Outstanding, ending balance (in shares) | 25,500 | |
Outstanding, beginning balance (in dollars per share) | $ 4.53 | |
Granted | 180,000 | 34,000 |
Granted (in dollars per share) | $ 2.58 | $ 4.53 |
Vested | 60,500 | 8,500 |
Vested (in dollars per share) | $ 3.71 | $ 4.53 |
Forfeited/Cancelled | ||
Forfeited/Cancelled (in dollars per share) | ||
Outstanding, ending balance (in shares) | 145,000 | 25,500 |
Outstanding, ending balance (in dollars per share) | $ 2.45 | $ 4.53 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | Oct. 07, 2021 | Jun. 30, 2021 | Jun. 11, 2021 | Jan. 20, 2021 | Jan. 15, 2021 | Sep. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 03, 2021 | Jan. 12, 2021 | Aug. 28, 2020 |
Class of Stock [Line Items] | |||||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | |||||||||
Common stock, shares issued | 13,155,342 | 5,636,548 | |||||||||
Common stock, shares outstanding | 13,155,342 | 5,636,548 | |||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||||||||
Preferred stock, no par value | $ 0 | $ 0 | |||||||||
Preferred stock, shares issued | 4,016,955 | 0 | |||||||||
Preferred stock, shares outstanding | 4,016,955 | 0 | |||||||||
Preferred stock, dividend rate | 8.00% | ||||||||||
Preferred stock, liquidation preference | $ 25 | ||||||||||
Preferred stock accrued dividend | $ 670,900 | ||||||||||
Net proceeds from issuance of preferred stock | 66,572,300 | ||||||||||
Stock repurchased during period, value | $ 5,000,000 | ||||||||||
Granted (in shares) | 240,000 | 213,784 | |||||||||
Granted (in dollars per share) | $ 3.23 | $ 4.79 | |||||||||
Exercise of stock options (in shares) | 45,046 | ||||||||||
Exercise price per share | $ 0.40 | ||||||||||
Exercise of stock options | $ 18,000 | ||||||||||
Former Employee [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Exercise of stock options (in shares) | 45,046 | ||||||||||
Exercise price per share | $ 0.40 | ||||||||||
Exercise of stock options | $ 20,000 | ||||||||||
Share-Based Payment Arrangement, Option [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Granted (in shares) | 240,000 | ||||||||||
Expiration period (in years) | 10 years | ||||||||||
Share-based compensation arrangement by share-based payment award, options, granted in period, fair value | $ 300,000 | ||||||||||
Share-based payment arrangement, expense | 300,000 | $ 100,000 | |||||||||
Option, cost not yet recognized, amount | 100,000 | ||||||||||
Share-based compensation arrangement by share-based payment award, options, outstanding, intrinsic value | 400,000 | 1,000,000 | |||||||||
Share-based compensation arrangement by share-based payment award, options, exercisable, intrinsic value | $ 300,000 | 700,000 | |||||||||
Share-Based Payment Arrangement, Option [Member] | Minimum [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Granted (in dollars per share) | $ 2.76 | ||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | ||||||||||
Share-Based Payment Arrangement, Option [Member] | Maximum [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Granted (in dollars per share) | $ 3.41 | ||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||||||||||
Restricted Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share-based payment arrangement, expense | $ 200,000 | 40,000 | |||||||||
Option, cost not yet recognized, amount | $ 500,000 | ||||||||||
Common Stock Warrant [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and rights outstanding, term | 5 years | ||||||||||
Warrants and rights outstanding | $ 9,900,000 | ||||||||||
Class of warrant or right, outstanding (in shares) | 18,376,000 | ||||||||||
Aggregate intrinsic value, outstanding | $ 100,000 | 100,000 | |||||||||
Aggregate intrinsic value, exercisable | $ 100,000 | 100,000 | |||||||||
Common Stock Warrant [Member] | Minimum [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 2.97 | ||||||||||
Warrants and rights outstanding, vesting term | 0 months | ||||||||||
Common Stock Warrant [Member] | Maximum [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 5 | ||||||||||
Warrants and rights outstanding, vesting term | 6 months | ||||||||||
Preferred Stock Warrant [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 24.97 | ||||||||||
Warrants and rights outstanding, term | 5 years | ||||||||||
Class of warrant or right, outstanding (in shares) | 12,000 | ||||||||||
Warrants and rights outstanding, vesting term | 6 months | ||||||||||
Aggregate intrinsic value, outstanding | $ 0 | 0 | |||||||||
Aggregate intrinsic value, exercisable | 0 | $ 0 | |||||||||
Fair value adjustment of warrants | $ 100,000 | ||||||||||
Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued during period shares | 9,200,000 | 2,031,705 | |||||||||
Stock repurchase program, authorized amount | $ 5,000,000 | ||||||||||
Stock repurchase program, amount of shares authorized to be repurchased, percentage | 17.00% | ||||||||||
Repurchase of stock (in shares) | 1,806,752 | ||||||||||
Average price (in dollars per share) | $ 2.77 | ||||||||||
Stock repurchased during period, value | $ 5,000,000 | ||||||||||
Exercise of stock options (in shares) | 45,046 | ||||||||||
Investor [Member] | Follow-On Preferred Stock Offering Warrants [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and rights outstanding | $ 6,000,000 | ||||||||||
Investor [Member] | Warrant [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 5 | ||||||||||
Warrants and rights outstanding, term | 5 years | ||||||||||
Warrants and rights outstanding | $ 3,700,000 | ||||||||||
IPO [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued during period shares | 2,031,705 | ||||||||||
Share issued price per share | $ 6 | ||||||||||
Sale of stock, number of shares issued in transaction (in shares) | 265,005 | ||||||||||
Gross proceeds from offering | $ 12,200,000 | ||||||||||
Sale of stock, consideration received on transaction | $ 10,800,000 | ||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 88,335 | ||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 7.50 | ||||||||||
Warrants and rights outstanding, term | 4 years | ||||||||||
[custom:FairValueOfWarrants-0] | $ 200,000 | ||||||||||
IPO [Member] | Olympic Views, LLC [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share issued price per share | $ 6 | ||||||||||
Shares issued on conversion of debt | 82,826 | ||||||||||
Value of shares issued on conversion of debt | $ 400,000 | ||||||||||
Accrued interest | 100,000 | ||||||||||
Follow-on Offering [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued during period shares | 9,200,000 | 9,200,000 | |||||||||
Share issued price per share | $ 3 | $ 3 | |||||||||
Sale of stock, number of shares issued in transaction (in shares) | 1,200,000 | 1,200,000 | |||||||||
Gross proceeds from offering | $ 27,600,000 | $ 27,600,000 | |||||||||
Sale of stock, consideration received on transaction | $ 25,100,000 | $ 25,100,000 | |||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 400,000 | ||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 3.75 | ||||||||||
Warrants and rights outstanding, term | 5 years | ||||||||||
[custom:FairValueOfWarrants-0] | $ 500,000 | ||||||||||
Preferred Stock Offering [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued during period shares | 60,555 | 1,200,000 | |||||||||
Share issued price per share | $ 5 | ||||||||||
Sale of stock, number of shares issued in transaction (in shares) | 4,140,000 | ||||||||||
Gross proceeds from offering | $ 1,400,000 | ||||||||||
Sale of stock, consideration received on transaction | $ 30,000,000 | ||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 540,000 | ||||||||||
Stock issuance cost | $ 28,700,000 | ||||||||||
Preferred Stock Offering [Member] | Warrant One [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 12,000 | ||||||||||
Preferred Stock Offering [Member] | Warrant Two [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 36,000 | ||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 5 | ||||||||||
Follow On Preferred Stock Offering [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued during period shares | 360,000 | ||||||||||
Sale of stock, number of shares issued in transaction (in shares) | 2,400,000 | ||||||||||
Sale of stock, consideration received on transaction | $ 37,900,000 | ||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 13,800,000 | ||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 2.97 | ||||||||||
Proceeds from issuance of preferred stock and warrants | $ 36,000,000 | ||||||||||
Follow On Preferred Stock Offering [Member] | Investor [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 2.97 | ||||||||||
Warrants and rights outstanding, term | 5 years | ||||||||||
Follow On Preferred Stock Offering [Member] | Underwriters [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 1,800,000 | ||||||||||
Over-Allotment Option [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Net proceeds from issuance of preferred stock | $ 5,400,000 | ||||||||||
Series A Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares issued | 4,016,955 | ||||||||||
Preferred stock, shares outstanding | 4,016,955 | ||||||||||
Preferred stock, dividend rate | 8.00% | ||||||||||
Preferred stock, liquidation preference | $ 25 | ||||||||||
Conversion price per share | $ 4.50 | ||||||||||
Conversion of shares | 5.556 |
SCHEDULE OF COMPANY_S REPORTABL
SCHEDULE OF COMPANY’S REPORTABLE SEGMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total Revenue | $ 72,352,700 | $ 50,397,000 |
Cost of goods sold by segment | 50,419,400 | 48,393,800 |
Gross profit (loss) by segment | 21,933,300 | 2,003,200 |
Homes [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenue | 17,654,600 | 37,276,400 |
Cost of goods sold by segment | 15,168,500 | 35,140,000 |
Gross profit (loss) by segment | 2,486,100 | 2,136,400 |
Developed Lots [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenue | 26,825,500 | 12,538,000 |
Cost of goods sold by segment | 15,885,300 | 13,253,800 |
Gross profit (loss) by segment | 10,940,200 | (715,800) |
Entitled Land [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenue | 20,625,000 | |
Cost of goods sold by segment | 11,689,100 | |
Gross profit (loss) by segment | 8,935,900 | |
Fee Build [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenue | 6,802,900 | |
Cost of goods sold by segment | 5,991,300 | |
Gross profit (loss) by segment | 811,600 | |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenue | 444,700 | 582,600 |
Cost of goods sold by segment | 1,685,200 | |
Gross profit (loss) by segment | $ (1,240,500) | $ 582,600 |
SEGMENTS (Details Narrative)
SEGMENTS (Details Narrative) | 12 Months Ended |
Dec. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Aggregate revenue percentage | 99.00% |
SUMMARY OF COST, ESTIMATED EARN
SUMMARY OF COST, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Costs incurred on uncompleted contracts | $ 5,991,300 | |
Estimated earnings | 811,600 | |
Costs and estimated earnings on uncompleted contracts | 6,802,900 | |
Billings to date | 4,635,700 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 2,167,200 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | ||
Total earnings from completed and uncompleted contracts | $ 2,167,200 |
UNCOMPLETED CONTRACTS (Details
UNCOMPLETED CONTRACTS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract Assets, net | $ 2,167,200 | |
Estimated earnings | 811,600 | |
Costs in excess of billings | 1,400,000 | |
Uncollected billings | $ 1,000,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) $ / shares in Units, $ in Millions | Mar. 14, 2022$ / shares | Mar. 07, 2022USD ($) | Mar. 03, 2022USD ($) | Feb. 25, 2022USD ($) | Feb. 14, 2022USD ($)Apartment | Jan. 26, 2022USD ($)Apartment$ / shares | Jan. 12, 2022$ / shares | Dec. 31, 2021 |
Subsequent Event [Line Items] | ||||||||
Preferred stock, dividend rate, percentage | 8.00% | |||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 25 | |||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Basis spread on variable rate | 4.75% | |||||||
Subsequent Event [Member] | Yelm Washington [Member] | Marquee Funding Group [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Short-term debt | $ 15.7 | |||||||
Number of unit | Apartment | 75 | |||||||
Subsequent Event [Member] | Lacey, Washington [Member] | Washington Federal Bank [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Short-term debt | $ 29.7 | |||||||
Number of unit | Apartment | 177 | |||||||
Subsequent Event [Member] | Blaine Washington [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from sale of land | $ 4.5 | |||||||
Subsequent Event [Member] | Tacoma, Washington [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Payments to acquire land | $ 6.7 | |||||||
Series A Preferred Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock, dividend rate, percentage | 8.00% | |||||||
Series A Preferred Stock [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock, dividend rate, percentage | 8.00% | 8.00% | 8.00% | |||||
Dividends per share, declared (in dollars per share) | $ / shares | $ 0.167 | $ 0.167 | $ 0.167 |