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FERREIRA CONSTRUCTION COMPANY INC., AND SUBSIDIARY
<br />NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<br />the completion of the project. Retainage agreements vary from project to project and depend on a number of
<br />circumstances, such as contract -specific terms, project performance and other variables that may arise as the
<br />Company makes progress towards completion.
<br />Retainage payable ("contract liability") in the amount of $8,153,989 and $4,944,969 as of December
<br />31, 2020 and December 31, 2019 represents amounts invoiced to the Company by subcontractors where
<br />payments have been partially withheld pending the completion of certain milestones, other contractual
<br />conditions or upon the completion of the project. Generally, retainage payable is not remitted to subcontractors
<br />until the associated retainage receivable from customers is collected.
<br />Accrued losses ("contract liabilities") related to uncompleted contracts were $353,366 and $47,315 as
<br />of December 31, 2020 and December 31, 2019, respectively.
<br />Note 7 - Prepaid Expenses and Other Current Assets:
<br />Prepaid insurance
<br />$ 487,989
<br />Refundable insurance
<br />446,201
<br />Prepaid software
<br />220,095
<br />Shop supplies
<br />60,000
<br />Insurance escrow
<br />50,000
<br />Cash surrender value of life insurance
<br />42,153
<br />Other
<br />166,996
<br />$ 1,473,434
<br />Note 8 - Property and Equipment:
<br />Land
<br />$ 5,813,109
<br />Building
<br />2,811,176
<br />Construction equipment
<br />71,164,273
<br />Trucks and small vehicles
<br />45,466,986
<br />Office equipment
<br />1,670,005
<br />Leasehold improvements
<br />1,517,330
<br />Construction in progress
<br />257,093
<br />128,699,972
<br />Less: Accumulated depreciation
<br />66,260,759
<br />$ 62,439,213
<br />Depreciation expense totaled $7,449,970 for the year ended December 31, 2020, of which $6,969,790
<br />was included in Cost of Sales and $480,180 was included in General and Administrative Expenses.
<br />Note 9 - Investment in Joint Ventures:
<br />The Company is a partner in four joint ventures (two active) that were formed to accomplish specific
<br />construction projects. Summary information of the joint ventures as of and for the year ended December 31,
<br />2020 is as follows:
<br />15
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