Page 4 - Q1 2022 RNR

Financial Reporting Fiscal 2022 1st Quarter - R N R Construction, Inc. - 3 - savings account with $ 8.77MM. Cash Flow will suffer in the 2nd quarter to rebound in the back
half of the year.
With regards to Balance Sheet Investments, Equities remain with an equal amount in cash idle, roughly equally $1 MM, which cash reserves will wait for the foreseeable future. We expect very significant investment opportunities with this cash asset for entry cost basis reduction in the very near future (as seen in the market at the writing of this report). As the reader is very well discerning, quarterly fluctuations recording unrealized gains on Equities is to be entirely disregarded.
In the beginning of this year, R N R continued its balance sheet diversification with a $500,000 investment in alternate investments, Crypto Currencies. In this class, the invested portion of
$ 249,660 is balanced by $ 250,340 in cash reserves as a hedge providing significant investment protection. This will remain idle for the foreseeable future. All investments are nearly immediately transferable to cash in a matter of days.
Addressing the accounting rules on cryptocurrencies, a beautiful dyslexic nonsense of accounting stipulations, the reader will note an entry of unrealized gains which we have denoted as “Impaired Unrealized Gains.” FASB rules require entries for crypto currencies based on the lowest value during the reporting period, not the value at the end of the period such as equities and for that matter, any all-other investment asset. For R N R’s cryptocurrency holding, an entry of unrealized gains based on the difference between the end of period value to the purchase cost basis would be significantly positive. In this case, during that period, shortly after our purchase, the value of the acquisition fell slightly below our purchase price, thus the entry is based on this lowest price during the period. Repeating, this is an “Impaired Unrealized Gain,” and like the “Equities Unrealized Gain,” is to be entirely disregarded and the Balance Sheet has an equivalent “impaired value”. Repeating, these are stable, easily convertible investments which short term fluctuations in unrealized gains and values to be ignored.
The reader is notified that these two investments will be the last investments for the foreseeable future. Carbon Tax Credits, especially North of the Border are still complex and highly speculative of the nascent instruments.
Financial reporting is incomplete without addressing over and under billings.
Generally, its “Costs in Excess of Billings” are very restrained and involve nascent contracts with start-up expenses and the lag in initial billings. The total of “Costs in Excess if Billings” is $ 757,272, concentrated on two (2) contracts : Village 7 – Ferrari (157) and Pleasant Grove Creek (165) which both have not started and represent large early expenditures to step in front of inflation. In fact, on the Pleasant Grove Creek Design-Build, R N R purchased nearly 10 months ahead $220,000 in steel, a significant wise decision with today’s market prices. The