Quarterly report pursuant to Section 13 or 15(d)

Costs and Estimated Earnings on Uncompleted Contracts

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Costs and Estimated Earnings on Uncompleted Contracts
3 Months Ended
Mar. 31, 2014
Costs and Estimated Earnings on Uncompleted Contracts [Abstract]  
Costs and Estimated Earnings on Uncompleted Contracts
5.           Costs and Estimated Earnings on Uncompleted Contracts
 
Costs and estimated earnings on uncompleted contracts consist of the following at March 31, 2014 and December 31, 2013:
 
   
2014
   
2013
 
Costs incurred on uncompleted contracts
 
$
239,083
   
$
228,643
 
Provision for loss on uncompleted contracts
   
11,630
     
9,896
 
Estimated income (loss)
   
(58,372
)
   
(47,932
)
     
192,341
     
190,607
 
Less:  billings to date
   
(214,956
)
   
(214,956
)
                 
   
$
(22,615
)
 
$
(24,349
)
 
 
The above amounts are included in the accompanying condensed consolidated balance sheets under the following captions at March 31, 2014 and December 31, 2013.
 
   
2014
   
2013
 
Costs and estimated earnings in excess of billings on uncompleted contracts
  $ -     $ -  
Billings in excess of cost and estimated earnings on uncompleted contracts
    (22,615 )     (24,349)
    $ (22,615 )     (24,349 )
 
Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. The Company periodically evaluates and revises its estimates and makes adjustments when they are considered necessary.
 
As of March 31, 2014 and December 31, 2013, the Company has accrued anticipated losses on uncompleted contracts in the amount of $11,630 and $9,896, respectively. For the three months ended March 31, 2014, $1,734 is included in cost of revenue on the accompanying condensed consolidated statements of operations and comprehensive loss. This amount is included in accounts payable and accrued expenses on the accompanying condensed consolidated balance sheets.