H.A. CONTRACTING CORP. - Laserfiche WebLink

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8 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Concentration of Credit Risk From time to time, the Company maintains cash deposits at a financial institution that exceed federally insured limits. The contract receivables of the Company are unsecured; however, the Company retains its lien rights in the event that payment is not received. Contract receivables from two customers amounted to approximately 61% of the total receivables at December 31, 2022. Revenues from two customers amounted to approximately 47% of all revenues for the year ended December 31, 2022. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue recognition under the percentage-of-completion method is based upon estimates of costs to complete individual contracts. Management’s judgment in determining the adequacy of the estimates is based upon several factors, which include, but are not limited to, estimating experience, specific job conditions and current economic conditions. Given the nature of the construction industry and the inherent uncertainties in estimating costs, it is reasonably possible the Company’s estimated costs to complete the individual contracts could change in the future. Employee Benefit Plan The Company maintains a qualified profit sharing plan under Section 401(k) of the Internal Revenue Code for all eligible employees. The Company’s contribution amounted to $30,000 for the year ended December 31, 2022. Subsequent Events The Company has evaluated subsequent events through March 10, 2023, which is the date the accompanying financial statements were available to be issued. NOTE 2. INVESTMENT IN MARKETABLE SECURITIES Marketable securities at December 31, 2022 consisted of interest bearing funds with an aggregate fair market value of $67,848.