Quarterly report pursuant to Section 13 or 15(d)

Construction Backlog

v3.20.2
Construction Backlog
6 Months Ended
Jun. 30, 2020
Construction Backlog [Abstract]  
Construction Backlog

11.

Construction Backlog

 

The following represents the backlog of signed construction and engineering contracts in existence at June 30, 2020 and December 31, 2019, which represents the amount of revenue the Company expects to realize from work to be performed on uncompleted contracts in progress and from contractual agreements in effect at June 30, 2020 and December 31, 2019, respectively, on which work has not yet begun:

 

 

 

 

2020

 

 

2019

 

 

Balance - beginning of period

 

$

17,634,261

 

 

$

97,657,379

 

 

New contracts and change orders during the period

 

 

514,041

 

 

 

17,659,053

 


Adjustments and cancellations, net

(27,370 )

(94,697,336 )

 

Subtotal  

 

 

18,120,932

 

 

 

20,619,096

 

 

Less: contract revenue earned during the period

 

 

(827,705

)

 

 

(2,984,835

)

 

Balance - end of period

 

$

17,293,227

 

 

$

17,634,261

 

 

Backlog at June 30, 2020 included one large contract entered into by the Company during the third quarter of 2019 in the amount of approximately $17 million. The Company expects that all of this revenue will be realized by September 30, 2022. During the second quarter of 2019, the Company moved a $25 million contract out of backlog after receiving a cancellation notice from the customer. During the third quarter of 2019, the Company removed two contracts in the amount of $55 million and $15 million out of backlog due to the fact that these projects fall under the exclusive license agreement (“ELA”) executed during the fourth quarter of 2019. Under the ELA, the Company cannot guarantee, but expects to receive, approximately $2.4 million in royalties for one such project. The Company expects to receive these royalties for this one such project through June 30, 2022. Backlog does not include expected royalty fees to the Company under the ELA from projects to be delivered by our licensee.

   

The Company’s remaining backlog as of June 30, 2020 represents the remaining transaction price of firm contracts for which work has not been performed and excludes unexercised contract options. 


The Company expects to satisfy its backlog which represents the remaining unsatisfied performance obligation on contracts as of June 30, 2020 over the following period:





2020

Within 1 year
$ 4,436,977

1 to 2 years


10,285,000

Thereafter


2,571,250


Total Backlog
$ 17,293,227


Although backlog reflects business that is considered to be firm, cancellations, deferrals or scope adjustments may occur. Backlog is adjusted to reflect any known project cancellations, revisions to project scope and cost and project deferrals, as appropriate.