Contracts in progress

12 Months Ended

Dec. 31, 2022

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,
	2022		2021
Revenue recognized to date on contracts in progress	$	25,469,014	$	6,109,396
Amounts billed to date on contracts in progress		(33,407,182)		(6,370,855)
Retainage		2,047,969		237,542
Net contract liability	$	(5,890,199)	$	(23,917)

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

	December 31,
	2022		2021
Contract assets	$	2,913,722	$	489,961
Contract liabilities		(8,803,921)		(513,878)
Net contract liability	$	(5,890,199)	$	(23,917)

The significant increase in contract liabilities from December 31, 2021 to December 31, 2022 is primarily attributable to billings on PERC’s construction contract with Liberty Utilities for a water treatment facility in Arizona.

As of December 31, 2022, the Company had unsatisfied or partially unsatisfied performance obligations for contracts in progress representing approximately $97.9 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 $75.3 million during the year ending December 31, 2023 and $22.6 million thereafter. In addition, the Company recognized revenue of $468,000 in the year ended December 31, 2022, that was included in the contract liability balance as of December 31, 2021.