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De la Hoz Builders, Inc. Notes to Financial Statements Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regardi-tg interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. Income Taxes The Company and its stockholders have elected to be taxed under the provisions of Subchapter "S" of the Internal Revenue Code. Under those provisions, the Company does not pay federal and state corporate income taxes on its taxable income. Instead, the stockholders are liable for individual federal and state income taxes for their respective shares of the Company's taxable income. When applicable, the Company recognizes interest related to income taxes in interest expense and penalties in operating expenses. For the year ended December 31, 2020, the Company had no interest or penalties related to income taxes. Tax positions are recognized only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax position is recorded, The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Subsequent Events Management has evaluated subsequent events through March 1, 2021, the date that the financial statements were available to be issued. See Note 11 for relevant disclosure(s). No subsequent events occurring after this date have been evaluated for inclusion in these statements. Note 3: CONCENTRATION OF CREDIT RISK The Company maintains cash balances at financial institutions that are insured by the federal Deposit Insurance Corporation (FDIC). All deposit accounts are insured up to $250,000 by the FDIC in aggregate per financial institution. The Company's had $669,352 cash in excess of federally insured limits at December 31, 2020. At December 31, 2020 one customer accounted for 86% of the total revenue. II