Opening of Bids - Traffic Signal Detection Improvements Proj No. 120-046 - TGB Unlimited, Inc.

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TGB Unlimited, Inc. DBA SIT Bancroft Electric NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 and 2019 (See Independent Accountant's Review Report) DESCRIPTION OF BUSINESS —TGB Unlimited, Inc., DBA SIT Bancroft Electric (The Company) operates as an electrical contractor engaged in the installation of electrical components. Contracts are primarily with industries, as well as state and local government agencies. Substantially all customers are located in northern Indiana. NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—This summary of significant accounting policies is presented to assist in understanding the Company's financial statements. The financial statements and notes are representation of the Company's management, who is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of financial statements. Following is a summary of the significant accounting policies of the Company: Revenue and Cost Recognition —The Company recognizes revenues from construction contracts on the percentage -of -completion method, measured by the percentage of actual cost incurred to date to estimated cost for each contract. This method is used since management considers total cost to the be the best available measure of progress on the projects. Provision for estimated losses on uncompleted contracts is made in the period in which such losses are determined. When changes in job performance, job conditions and estimated profitability occur, including those arising from contract penalty provision and final contract settlements, these changes may result in revisions to the final estimated revenue. Costs and income are recognized in the period in which the revisions are determined. Contract costs include all direct labor, labor burden, material, subcontract and equipment costs and those indirect costs related to contract performance, such as indirect labor, supplies and tools. General and administrative expense are charged to expense as incurred. Claims for additional contract revenue are recognized when the realization of the claim is assured, and the amount can be reasonably estimated. The asset, "Cost and Earnings in Excess of Billings" represents revenues recognized in excess of amounts billed. The liability, "Billings in Excess of Costs and Earnings", represents billings in excess of revenues recognized. The Company's total revenues do not include sales tax, as the Company is a pass-through conduit for collection and remitting sales tax.