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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [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):

NamesDates of FormationAttributable Interest
December 31,
2021		December 31,
2020
Saylor View Estates, LLCMarch 30, 201451 %51 %
Harbor Materials, LLC*July 5, 2018N/A100 %
Belfair Apartments, LLCDecember 3, 2019100 %100 %
Pacific Ridge CMS, LLCMay 24, 2021100 %N/A
Tanglewilde, LLCJune 25, 2021100 %N/A
HCDI FL CONDO LLCAugust 3, 2021100 %N/A
HCDI Mira, LLCAugust 30, 2021100 %N/A
HCDI Bridgeview LLCOctober 28, 2021100 %N/A
HCDI Wyndstone, LLCSeptember 15, 2021100 %N/A
HCDI Semiahmoo, LLCDecember 17, 2021100 %N/A
*Harbor Materials, LLC was voluntarily dissolved with the State of Washington as of January 29, 2021.
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
For the years ended December 31, 2021 and 2020 when computing fair value of share-based payments, the Company has considered the following variables:

 December 31, 2021December 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%
Dividends00
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.

 Year Ended December 31, 2021Year 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 - basic14,336,789 4,214,418 
Dilutive securities (a):
  Options19,482 — 
  Warrants144,456 — 
  Restricted Stock Awards29,890 — 
  Convertible Preferred Stock22,384,874 — 
 
Weighted average common shares outstanding and assumed36,915,491 4,214,418 
conversion – diluted
 
Basic net income (loss) per common share$0.43 $(0.84)
 
Diluted net income (loss) per common share$0.24 $(0.84)
 
(a) - Anti-dilutive securities excluded:18,901,282 241,609 
Schedule of Property and Equipment Estimated Useful Lives Depreciation is computed by the straight-line method (after considering their respective estimated residual values) over the estimated useful lives:
Construction Equipment
5-10 years
Leasehold Improvements
The lesser of 10 years or the remaining life of the lease
Furniture and Fixtures 5 years
Computers3 years
Vehicles10 years
Property and equipment stated at cost, less accumulated depreciation and amortization, consisted of the following:

 December 31, 2021December 31, 2020
   
Machinery and Equipment$10,577,600 $8,908,000 
Vehicles71,800 73,500 
Furniture and Fixtures420,300 136,300 
Leasehold Improvements81,200 7,000 
Total Fixed Assets11,150,900 9,124,800 
Less Accumulated Depreciation(1,951,200)(948,800)
Fixed Assets, Net$9,199,700 $8,176,000 
Disaggregation of Revenue From Contracts With Customers
Revenues from contracts with customers are summarized by category as follows for the years ended December 31:

Year EndedYear Ended
December 31, 2021December 31, 2020
Entitled Land$20,625,000 $— 
Developed Lots26,825,50012,538,000
Fee Build6,802,900—
Homes17,654,60037,276,400
Construction Materials444,700582,600
Total Revenue$72,352,700 $50,397,000 
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:

Year EndedYear Ended
 December 31, 2021December 31, 2020
Performance obligations satisfied at a point in time$65,549,800 $50,397,000 
Performance obligations satisfied over time6,802,900 — 
Total Revenue$72,352,700 $50,397,000