Introduction
You should read the matters described and incorporated by reference in "Risk
Factors" and the other cautionary statements made in this Report, and
incorporated by reference herein, as being applicable to all related
forward-looking statements wherever they appear in this Report. We cannot assure
you that the forward-looking statements in this Report will prove to be accurate
and therefore prospective investors are encouraged not to place undue reliance
on forward-looking statements. Other than as required by law, we undertake no
obligation to update or revise these forward-looking statements, even though our
situation may change in the future.
This information should be read in conjunction with the interim unaudited
financial statements and the notes thereto included in this Quarterly Report on
Form 10-Q, and the audited financial statements and notes thereto and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" contained in our Annual Report on Form 10-K for the year ended
December 31, 2021, filed with the Securities and Exchange Commission on April
13, 2021 (the "Annual Report").
Certain capitalized terms used below and otherwise defined below, have the
meanings given to such terms in the footnotes to our consolidated financial
statements included above under "Part I - Financial Information" - "Item 1.
Financial Statements".
In this Quarterly Report on Form 10-Q, we may rely on and refer to information
regarding the industries in which we operate in general from market research
reports, analyst reports and other publicly available information. Although we
believe that this information is reliable, we cannot guarantee the accuracy and
completeness of this information, and we have not independently verified any of
it.
Unless the context requires otherwise, references to the "Company," "we," "us,"
"our," "Reliant", "Reliant Holdings" and "Reliant Holdings, Inc." refer
specifically to Reliant Holdings, Inc. and its consolidated subsidiaries.
In addition, unless the context otherwise requires and for the purposes of this
Report only:
? "Exchange Act" refers to the Securities Exchange Act of 1934, as amended;
? "SEC" or the "Commission" refers to the United States Securities and
Exchange Commission; and
? "Securities Act" refers to the Securities Act of 1933, as amended.
Where You Can Find Other Information
We file annual, quarterly, and current reports, proxy statements and other
information with the SEC. The SEC maintains an Internet site that contains
reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC like us at http://www.sec.gov (our
filings can be found
at https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001682265).
Copies of documents filed by us with the SEC are also available from us without
charge, upon oral or written request to our Secretary, who can be contacted at
the address and telephone number set forth on the cover page of this Report. Our
website address is https://www.reliantholdings.net. The information on, or that
may be accessed through, our website is not incorporated by reference into this
Report and should not be considered a part of this Report.
18
Table of Contents
Summary of The Information Contained in Management's Discussion and Analysis of
Financial Condition and Results of Operations
Our Management's Discussion and Analysis of Financial Condition and Results of
Operations (MD&A) is provided in addition to the accompanying consolidated
financial statements and notes to assist readers in understanding our results of
operations, financial condition, and cash flows. MD&A is organized as follows:
? Overview. Summary of our operations.
? Plan of Operations. A description of our plan of operations for the next
12 months including required funding.
? Results of Operations. An analysis of our financial results comparing the
three and six months ended June 30, 2022 and 2021.
Liquidity and Capital Resources. An analysis of changes in our
? consolidated balance sheets and cash flows and discussion of our financial
condition.
Critical Accounting Policies and Estimates. Accounting estimates that we
? believe are important to understanding the assumptions and judgments
incorporated in our reported financial results and forecasts.
Overview
Corporate Information
Our principal executive offices are located at 12343 Hymeadow Drive, Suite 3-A,
Austin, Texas 78750, and our telephone number is (512) 407-2623.
Summary Description of Business Operations
Residential Pools
We, through our wholly-owned subsidiary Reliant Pools (which has been in
operation since September 2013), are an award winning, custom, swimming pool
construction company located in the greater Austin, Texas market. We assist
customers with the design of, and then construct, recreational pools which blend
in with the surroundings, geometric pools which complement the home's
architecture and water features (e.g., waterfalls and negative edge pools) which
provide the relaxing sounds of moving water. Moving forward, we plan on
expanding our operations through an accretive business model in which we plan to
acquire competitors in both the custom pool construction and pool
maintenance/service industries locally, regionally, and nationally, funding
permitting.
To date, the majority of our growth has been through referral business. We offer
a wide variety of pool projects based upon price and the desires of the client.
When our sales personnel meet with a prospective customer, we provide them with
an array of projects from the basic pool building to more high-end projects that
may include waterfalls, mason work, backyard lighting and in-ground spas to
highlight the outdoor living experience.
Custom Homes
On October 10, 2018, the Company incorporated a new wholly-owned subsidiary in
Texas, Reliant Custom Homes, Inc. The Company is exploring opportunities to
expand operations in the Austin, Texas area as a custom home builder. To date,
the Company has engaged a consultant in connection with custom home builder
services, and has purchased land located in Lago Vista, Texas, in the Texas Hill
Country, outside of Austin, Texas, on which it intends to construct a custom
home which it then plans to sell. Current plans are for the custom home to be
approximately 2,300 square feet. In April 2020, the Company obtained a
construction loan for $221,000 for the construction costs associated with the
build, of which $53,415 was outstanding as of June 30, 2022, which funds were
used for building materials. The loan has been renewed and has been extended
through October 28, 2022. To date, the Company's subcontractors have completed
the framing and the Company plans to begin roofing the home in the next several
weeks. The Company currently estimates completing construction on the home
sometime in the third or fourth quarters of fiscal 2022.
19
Table of Contents
The construction of our planned custom home is being conducted under the
supervision of an on-site construction manager. Substantially all of our
construction work has been, and is planned to continue to be performed by
independent subcontractors under contracts that establish a specific scope of
work at an agreed-upon price. In addition, we anticipate that our construction
field manager will interact with homebuyers throughout the construction process
and instruct homebuyers on post-closing home maintenance.
We plan to maintain efficient construction operations and use industry and
company-specific construction practices.
Generally, we anticipate the construction materials to be used in our home
builder operations will be readily available from numerous sources. However, the
cost of certain building materials, especially lumber, steel, concrete, copper,
and petroleum-based materials, is influenced by changes in global commodity
prices, national tariffs, and other foreign trade factors. Additionally, the
ability to consistently source qualified labor at reasonable prices may be
challenging and we cannot determine the extent to which necessary building
materials and labor will be available at reasonable prices in the future.
We currently anticipate building custom homes on a build-to-order basis where we
do not begin construction of the home until we have a signed contract with a
customer. However, we may in the future also build speculative ("spec") homes,
which would allow us to compete with existing homes available in the market,
especially for homebuyers that require a home within a short time frame.
We plan to market our custom home services beginning in the next few weeks.
Plan of Operations
We had a working capital deficit of $176,275 as of June 30, 2022. With our
current cash on hand, expected revenues, and based on our current average
monthly expenses, we don't currently anticipate the need for additional funding
in order to continue our operations at their current levels and to pay the costs
associated with being a public company for the next 12 months. We may however
require additional funding in the future to expand or complete acquisitions. Our
plan for the next twelve months is to continue using the same marketing and
management strategies and continue providing a quality product with excellent
customer service while also seeking to expand our operations organically or
through acquisitions as funding and opportunities arise, and, as discussed
above, we have also purchased a homesite which we intend to construct a custom
home on which we then plan to sell. As our business continues to grow, customer
feedback will be integral in making small adjustments to improve the product and
overall customer experience. We plan to raise additional required funding when
required through the sale of debt or equity, which may not be available on
favorable terms, if at all, and may, if sold, cause significant dilution to
existing stockholders. If we are unable to access additional capital moving
forward, it may hurt our ability to grow and to generate future revenues.
Since the COVID-19 pandemic began, we have seen a sharp increase in demand for
pools, which we attribute to more people working from home, and sheltering in
place. We currently have a backlog which continues into August 2022. We are
unclear whether the current demand for pools will continue, if and when,
individuals begin working from their offices again. Notwithstanding that, things
are currently getting back to close to normal (with a few exceptions) as to the
availability of equipment, after experiencing delays in obtaining required
equipment from the 2021 winter storms which affected the Austin area and supply
chain constraints. Overall, demand for trade workers is extremely high, which
has resulted in higher prices for pools, which we attempt to pass on to
customers as much as possible.
20
Table of Contents
Results of Operations
For the Three Months Ended June 30, 2022 Compared to the Three Months Ended June
30, 2021
We had revenue of $1,046,820 for the three months ended June 30, 2022, compared
to revenue of $807,463 for the three months ended June 30, 2021, an increase of
$239,357 or 30% from the prior period. We recognize revenue based on the
percentage that a job is complete rather than upon completion. As such, total
revenue recognized for each period may be different than the product of total
completed pools during each period multiplied by the average pool contract price
of each pool during such period, as the construction of certain pools may have
started in one period and ended in another. Revenue increased during the current
period due to an increase in pool count during the comparable periods and
general timing of contracts as well as the higher priced pools being completed
in the current period. We have seen an increase in the demand for pools since
March 2020, which we believe is due to more people working from home due to the
COVID-19 pandemic.
We had cost of goods sold of $729,525 for the three months ended June 30, 2022,
compared to cost of goods sold of $498,860 for the three months ended June 30,
2021, an increase of $230,665 or 46% from the prior period.
Cost of goods sold increased mainly due to an increase in masonry, stone and
tile installed in and around our pools and coping expenses associated therewith
and increased labor and other costs, mainly due to increased costs of materials
and labor due to supply constraints and increases in pricing due to inflation.
The timing of our cost of goods sold is materially impacted based on the overall
scope and timing of the projects we are working on. In general, costs of goods
sold for the three months ended June 30, 2022 were higher than for the three
months ended June 30, 2021, due to an increase in the number of pools we are
building and an overall increase in material and labor costs due to inflation
and in certain cases supply constraints. The expenses which attributed to the
increase in cost of goods sold for the three months ended June 30, 2022,
compared to the three months ended June 30, 2021, included:
For the Three For the Three
Months Ended Months Ended Increase / Percentage
Cost of Goods Sold
Expense June 30, 2022 June 30, 2021 (Decrease) Change
Cost of decking $ 71,506 $ 53,110 $ 18,396 34.6 %
Plaster used in the
construction of pools 34,925 17,899 17,026 95.1 %
Gunite used in the
construction of pools 65,870 82,769 (16,899 ) -20.4 %
Pool equipment used to
filter and circulate
the water used in our
pools 95,810 88,239 7,571 8.6 %
Masonry, stone and
tile installed in and
around our pools and
coping expenses
associated therewith 79,950 44,021 35,929 81.6 %
Excavation and steel
expenses 98,610 81,829 16,781 20.5 %
Other, including labor 282,854 130,993 151,861 115.9 %
Total $ 729,525 $ 498,860 $ 230,665 46.2 %
21
Table of Contents
Cost of goods sold represents our pool construction costs, including raw
materials, outsourced labor, installed equipment, tile and coping expenses,
excavation costs and permit expenses. We anticipate our cost of goods sold
increasing in approximate proportion to increases in revenue and decreasing in
approximate proportion to decreases in revenue, moving forward, as our cost of
goods sold are factored into the price we charge for our pools and represent the
cost of pool construction, the majority of which is not fixed and varies
depending on the total number of pools and construction projects we complete
during each period and the size and complexity of such projects.
We had a gross margin of $317,295 for the three months ended June 30, 2022,
compared to a gross margin of $308,603 for the three months ended June 30, 2021,
an increase of $8,692 or 3% from the prior period due to the reasons described
above. Gross margin as a percentage of revenue was 30.3% and 38.2% for the three
months ended June 30, 2022 and 2021, respectively. Gross margin as a percentage
of revenue decreased due to higher construction costs resulting from increased
demand for materials and labor and increased material and labor costs.
We had operating expenses consisting solely of general and administrative
expenses of $199,786 for the three months ended June 30, 2022, compared to
operating expenses consisting solely of general and administrative expenses of
$217,890 for the three months ended June 30, 2021 (including $12,333 of
stock-based expenses described below under "Liquidity and Capital Resources").
Operating expenses decreased by $18,104 or 8% from the prior period mainly due
to the stock-based compensation expenses in the 2021 period, as discussed in
greater detail below.
We had interest income of $117 for the three months ended June 30, 2022,
compared to interest income of $6 for the three months ended June 30, 2021.
Interest income was in connection with interest generated by funds the Company
maintained in its savings account.
We had interest expense of $1,186 and $90, for the three months ended June 30,
2022 and 2021, respectively, due to interest paid in connection with loans for
Company vehicles, including a car used by our Chief Executive Officer and
amounts outstanding on our construction loan, each as described in greater
detail under "Liquidity and Capital Resources" below.
We had no gain on forgiveness of debt for the three months ended June 30, 2022,
compared to a gain on forgiveness of debt of $51,577 for the three months ended
June 30, 2021. The gain on forgiveness of debt for the three months ended June
30, 2021, was in connection with the forgiveness of the PPP Note as discussed
below under "Liquidity and Capital Resources".
We had net income of $116,440 for the three months ended June 30, 2022, compared
to a net loss of $142,206 for the three months ended June 30, 2021, a decrease
in net loss of $25,766 or 18%, mainly due to the $230,665 or 46% increase in
cost of goods sold, offset by the $239,357 increase in revenues and the $18,104
decrease in general and administrative expenses.
For the Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30,
2021
We had revenue of $2,078,104 for the six months ended June 30, 2022, compared to
revenue of $1,390,524 for the six months ended June 30, 2021, an increase of
$687,580 or 49% from the prior period. We recognize revenue based on the
percentage that a job is complete rather than upon completion. As such, total
revenue recognized for each period may be different than the product of total
completed pools during each period multiplied by the average pool contract price
of each pool during such period, as the construction of certain pools may have
started in one period and ended in another. Revenue increased during the current
period due to an increase in pool count during the comparable periods and
general timing of contracts as well as the higher priced pools being completed
in the current period. We have seen an increase in the demand for pools since
March 2020, which we believe is due to more people working from home due to the
COVID-19 pandemic.
22
Table of Contents
We had cost of goods sold of $1,548,109 for the six months ended June 30, 2022,
compared to cost of goods sold of $971,365 for the six months ended June 30,
2021, an increase of $576,744 or 59% from the prior period.
Cost of goods sold increased mainly due to an increase in masonry, stone and
tile installed in and around our pools and coping expenses associated therewith
and increased labor and other costs, mainly due to increased costs of materials
and labor due to supply constraints and increases in pricing due to inflation.
The timing of our cost of goods sold is materially impacted based on the overall
scope and timing of the projects we are working on. In general, costs of goods
sold for the six months ended June 30, 2022 were higher than for the six months
ended June 30, 2021, due to an increase in the number of pools we are building
and an overall increase in material and labor costs due to inflation and in
certain cases supply constraints. The expenses which attributed to the increase
in cost of goods sold for the six months ended June 30, 2022, compared to the
six months ended June 30, 2021, included:
For the Six For the Six
Months Ended Months Ended Increase/ Percentage
Cost of Goods
Sold Expense June 30, 2022 June 30, 2021 (Decrease) Change
Cost of decking $ 175,514 $ 102,855 $ 72,659 70.6 %
Plaster used in
the construction
of pools 73,256 50,758 22,498 44.3 %
Gunite used in
the construction
of pools 155,039 130,949 24,090 18.4 %
Pool equipment
used to filter
and circulate the
water used in our
pools 232,608 145,474 87,134 59.9 %
Masonry, stone
and tile
installed in and
around our pools
and coping
expenses
associated
therewith 259,682 114,443 145,239 126.9 %
Excavation and
steel expenses 189,653 164,597 25,056 15.2 %
Other, including
labor 462,357 262,289 200,068 76.3 %
Total $ 1,548,109 $ 971,365 $ 576,744 59.4 %
23
Table of Contents
Cost of goods sold represents our pool construction costs, including
raw materials, outsourced labor, installed equipment, tile and coping expenses,
excavation costs and permit expenses. We anticipate our cost of goods sold
increasing in approximate proportion to increases in revenue and decreasing in
approximate proportion to decreases in revenue, moving forward, as our cost of
goods sold are factored into the price we charge for our pools and represent the
cost of pool construction, the majority of which is not fixed and varies
depending on the total number of pools and construction projects we complete
during each period and the size and complexity of such projects.
We had a gross margin of $529,995 for the six months ended June 30, 2022,
compared to a gross margin of $419,159 for the six months ended June 30, 2021,
an increase of $110,836 or 26% from the prior period due to the reasons
described above. Gross margin as a percentage of revenue was 25.5% and 30.1% for
the six months ended June 30, 2022 and 2021, respectively. Gross margin as a
percentage of revenue decreased due to higher construction costs resulting from
increased demand for materials and labor and increased material and labor costs.
We had operating expenses consisting solely of general and administrative
expenses of $414,931 for the six months ended June 30, 2022, compared to
operating expenses consisting solely of general and administrative expenses of
$733,735 for the six months ended June 30, 2021 (including $349,333 of
stock-based expenses described below under "Liquidity and Capital Resources").
Operating expenses decreased by $318,804 or 43% from the prior period mainly due
to the stock-based compensation expenses in the 2021 period, as discussed in
greater detail below.
We had interest income of $206 for the six months ended June 30, 2022, compared
to interest income of $6 for the six months ended June 30, 2021. Interest income
was in connection with interest generated by funds the Company maintained in its
savings account.
We had interest expense of $1,659 and $493, for the six months ended June 30,
2022 and 2021, respectively, due to interest paid in connection with loans for
Company vehicles, including a car used by our Chief Executive Officer and
amounts outstanding on our construction loan, each as described in greater
detail under "Liquidity and Capital Resources" below.
We had a gain on forgiveness of debt of $51,577 for the six months ended June
30, 2021, compared to no gain or loss on the forgiveness of debt for the six
months ended June 30, 2022. The gain on forgiveness of debt for the three months
ended June 30, 2021, was in connection with the forgiveness of the PPP Note as
discussed below under "Liquidity and Capital Resources".
We had net income of $113,611 for the six months ended June 30, 2022, compared
to a net loss of $263,486 for the six months ended June 30, 2021, an increase in
net income of $377,097 or 143%, mainly due to the $687,580 increase in revenues
and $318,804 decrease in general and administrative expenses, offset by the
$110,836 increase in cost of goods sold and $51,577 decrease in gain on
forgiveness of debt, each as described above.
Liquidity and Capital Resources
We had total assets of $582,258 as of June 30, 2022, consisting of total current
assets of $486,770, which included cash of $256,548, house and real estate
inventory of $184,996, federal income tax receivable of $416, contract assets of
$24,195, accounts receivable of $1,405, and prepaid expenses of $19,210,
equipment, net of accumulated depreciation, of $50,668 and right-of-use asset of
$44,820. Federal income tax receivable relates to a payment made by the Company
to the United States Treasury in March 2016, in anticipation of the Federal
income tax the Company estimated would be owed at the end of the 2016 calendar
year. There was no tax due for the years ended December 31, 2016, 2017, 2018,
2019, 2020 or 2021, due to the Company's net losses, the utilization of a net
loss carryforward and application of prepaid taxes. Included in real estate
inventory as of June 30, 2022 is the value of the land and construction costs
incurred to date, which the Company acquired in the third quarter of 2019, and
is currently building a custom home on, as discussed above. Contract assets
include estimated earnings in excess of billings on uncompleted contracts.
Equipment relates to the vehicle discussed below.
24
Table of Contents
We had total liabilities of $700,517 as of June 30, 2022, which included current
liabilities of $663,045, including accounts payable and accrued liabilities of
$59,100, contract liabilities, relating to billings in excess of costs and
estimated earnings on uncompleted jobs of $515,219, current portion of note
payable of $10,451, construction loan of $53,415, and current portion of
right-of-use liability of $24,860, and long-term liabilities consisting of a
long-term note payable, net of current portion, of $17,445 relating to certain
vehicles (discussed below) and $20,027 of right-to-use liability.
On February 11, 2020, we purchased a Hyundai Genesis G80. The Vehicle had a
total purchase price of $50,616, including $11,000 which was paid as a down
payment in cash. We entered into a term note, secured by the vehicle, for the
remaining amount of the purchase price, which amount accrues interest at the
rate of 3.99% per annum and is payable at the rate of $660 per month through
maturity on February 27, 2025.
On April 28, 2020, the Company secured a construction loan from First United
Bank and Trust Company to be used to develop the land purchased in the third
quarter of 2019. The loan is in the amount of $221,000, bears interest at the
rate of 6.25% per annum and is currently repayable on October 28, 2022. As of
June 30, 2022 a total of $53,415 was outstanding on the loan.
On October 26, 2021, we purchased a Nissan Rogue for use by Mr. May. The vehicle
had a total purchase price of $29,931, including $10,000 which was paid as a
down payment in cash. We entered into a term note, secured by the vehicle, for
the remaining amount of the purchase price, which amount accrues interest at the
rate of 6.54% per annum and is payable at the rate of $336 per month through
maturity on May 26, 2027.
On May 11, 2020, we (through Reliant Pools) received a loan (the "Loan") from
Wells Fargo Bank N.A. (the "Lender") in the principal amount of $51,113,
pursuant to the Paycheck Protection Program (the "PPP") under the Coronavirus
Aid, Relief, and Economic Security Act (the "CARES Act"), which was enacted on
March 27, 2020. The Loan was evidenced by a promissory note (the "Note"), dated
effective May 4, 2020, issued by the Company to the Lender. The Note was
unsecured, was to mature on May 4, 2022 and accrued interest at a rate of 1.00%
per annum, payable monthly commencing on November 2, 2020, following an initial
deferral period as specified under the PPP. Proceeds from the Loan were
available to the Company to fund designated expenses, including certain payroll
costs, rent, utilities and other permitted expenses, in accordance with the PPP.
Under the terms of the PPP, up to the entire amount of principal and accrued
interest could be forgiven to the extent Loan proceeds were used for qualifying
expenses as described in the CARES Act and applicable implementing guidance
issued by the U.S. Small Business Administration under the PPP (including that
up to 60% of such Loan funds were used for payroll). The Company used the entire
Loan amount for designated qualifying expenses and applied for forgiveness of
the respective Loan in accordance with the terms of the PPP. On April 27, 2021,
the Company was notified that the outstanding principal and accrued interest for
the PPP Loan was forgiven in full by the SBA.
We had a working capital deficit of $176,275 as of June 30, 2022, compared to a
working capital deficit of $262,518 as of December 31, 2021.
We had $120,798 of net cash used in operating activities for the six months
ended June 30, 2022, as compared to $129,408 of net cash provided by operating
activities for the six months ended June 30, 2021. Net cash used in operating
activities for the 2022 period was mainly due to $139,275 of house and real
estate inventory, a reduction of $68,507 in contract liabilities and $21,495 of
accounts payable and accrued liabilities offset by $113,611 of net income. For
the 2021 period, net cash provided by operating activities was mainly due to
$349,333 of stock-based compensation and $86,607 of increase in contract
liabilities, offset by $263,486 of net loss. Stock based compensation includes
the issuance, on January 27, 2021, of 700,000 shares of restricted common stock
to Elijah May, our sole officer and director, 200,000 shares of restricted
common stock to Joel Hefner, the Vice President of Reliant Pools, a
non-executive officer position, and 700,000 shares of restricted common stock to
Michael Chavez, a consultant to the Company, each in consideration for services
rendered. The shares were valued at $0.20 per share, the closing price of the
Company's stock on January 27, 2021. Also, on December 4, 2020, the Company
entered into an investor relations agreement and issued a total of 200,000
shares of restricted common stock in exchange for a six-month service period.
The stock was valued at $34,000 at the date of grant and was recognized over the
service period. During the three months ended June 30, 2021, the Company
recognized $337,000 of stock-based expense related to these shares.
25
Table of Contents
We had $37,350 of net cash provided by financing activities for the six months
ended June 30, 2022, which was mainly due to $53,415 of proceeds from our
construction loan offset by $10,127 of payments on the notes payable related to
our vehicle loans and $5,938 of payments on right-of-use liability, as compared
to $4,636 of cash used in financing activities for the six months ended June 30,
2021, which were due to payments on our vehicle loans.
We do not currently have any additional commitments or identified sources of
additional capital from third parties or from our officers, directors or
majority stockholders. Additional financing may not be available on favorable
terms, if at all.
In the future, we may be required to seek additional capital by selling
additional debt or equity securities, or otherwise be required to bring cash
flows in balance when we approach a condition of cash insufficiency. The sale of
additional equity or debt securities, if accomplished, may result in dilution to
our then stockholders. Financing may not be available in amounts or on terms
acceptable to us, or at all. In the event we are unable to raise additional
funding and/or obtain revenues sufficient to support our expenses, we may be
forced to curtail or abandon our business operations, and any investment in the
Company could become worthless.
Critical Accounting Policies and Estimates
The preparation of financial statements and related disclosures in conformity
with U.S. generally accepted accounting principles and the Company's discussion
and analysis of its financial condition and operating results require the
Company's management to make judgments, assumptions and estimates that affect
the amounts reported. Management bases its estimates on historical experience
and on various other assumptions it believes to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities. Actual results may differ from
these estimates, and such differences may be material.
"Note 1. The Company and Summary of Significant Accounting Policies" in Part I,
Item 1 of this Form 10-Q and "Note 1. The Company, Summary of Significant
Accounting Policies and Going Concern" in the Notes to Consolidated Financial
Statements in Part II, Item 8, of the 2021 Annual Report, describe the
significant accounting policies and methods used in the preparation of the
Company's consolidated financial statements.
© Edgar Online, source Glimpses
RELIANT HOLDINGS, INC. 
