Laserfiche WebLink
Hycon Investments, LLC <br />Notes to Financial Statements <br />June 30, 2024 <br />12 <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />150,000$ <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Balance at the beginning of the period 1,174,653$ <br />New contracts and adjustments during the period 5,528,332 <br />6,702,985 <br />Less: contract revenues earned during the period 2,278,441 <br />Balance at the end of the period 4,424,544$ <br />Subsequent to the date of the financial statements through October 29, 2024, the Company has <br />signed an additional contract totaling approximately $2.1 million. <br />Note 6 Long-Term Debt (Continued) <br />Minimum principal payments required on the loan as of June 30, 2024 are as follows: <br />2025 $ 3,368 <br />2026 3,499 <br />2027 3,634 <br />2028 3,761 <br />2029 3,920 <br />Thereafter 131,818 <br />Note 7 Related Party Transactions <br />Office Lease <br />The Company leases its office space from a related party. The lease agreement is assessed and <br />renewed annually, and under the terms of the agreement, the Company does not make traditional <br />rent payments. Instead, the Company pays certain operating expenses associated with the leased <br />office space, which ranges from approximately $8,000 to $12,000 annually. <br />The Company has determined that this arrangement does not require adoption of ASC 842, Leases, <br />due to its short-term nature (less than 12 months) and annual reassessment. As permitted under <br />ASC 842-20-25-2, the Company has elected not to recognize right-of-use assets and lease liabilities <br />for short-term leases. <br />For the six-month period ended June 30, 2024, the Company incurred approximately $4,300 in <br />expenses related to this arrangement, which are included as part of general and administrative <br />expenses in the accompanying statement of earnings. <br />Note 8 Backlog <br />Backlog represents the amount of the transaction price, including variable consideration not <br />constrained, allocated to remaining (i.e., unsatisfied or partially unsatisfied) performance obligations <br />at the end of each reporting period. Backlog includes revenues expected to be realized both from <br />uncompleted contracts and from signed contracts on which work has not yet begun. <br />The Company’s backlog balance as of June 30, 2024 and changes during the six-month period, are <br />comprised of the following: