Contracts in progress

12 Months Ended

Dec. 31, 2025

Contracts in progress

Contracts in progress

6. Contracts in progress

Revenue recognized and amounts billed on contracts in progress are summarized as follows:

	December 31,
	2025		2024
Revenue recognized to date on contracts in progress	$	127,237,229	$	114,590,991
Amounts billed to date on contracts in progress		(138,121,977)		(121,833,354)
Retainage		2,646,929		2,585,952
Net contract liability	$	(8,237,819)	$	(4,656,411)

The above net balances are reflected in the accompanying consolidated balance sheet as follows:

	December 31,
	2025		2024
Contract assets	$	3,290,815	$	4,470,243
Contract liabilities		(11,528,634)		(9,126,654)
Net contract liability	$	(8,237,819)	$	(4,656,411)

The significant increase in contract liabilities from December 31, 2024 to December 31, 2025 is attributable to the Kalaeloa Desalco construction project with the Honolulu Board of Water Supply to construct and operate a seawater reverse osmosis desalination plant in Oahu, Hawaii.

As of December 31, 2025, the Company had unsatisfied or partially unsatisfied performance obligations for contracts in progress representing approximately $148.8 million in aggregate transaction price for contracts with an original expected length of greater than one year. The Company expects to earn revenue as it satisfies its performance obligations under those contracts in the amount of approximately $56.7 million during the year ending December 31, 2026 and $92.1 million thereafter. In addition, the Company recognized revenue of approximately $5.5 million in the year ended December 31, 2025, that was included in the contract liability balance as of December 31, 2024.