? while the Company had net income for the years ended December 31, 2021 and

risk, the Company incurred a net operating loss for both the quarters

manufacturing and barrier rental capacity, and plan to continue to do so,

there is no assurance that we will achieve significantly greater revenues,

? although the ultimate impact is uncertain at this time, resurgence of the

coronavirus outbreak may significantly affect the Company's financial

production volumes, employee absences, and bidding restrictions within

? our debt level increased significantly in February 2022, and our ability

? the continued availability of financing in the amounts, at the times, and

? the extent to which we are successful in developing, acquiring, licensing,

? changes in economic conditions specific to any one or more of our markets

(including the availability of public funds and grants for construction),

materials such as cement and aggregates, steel, and also with labor costs,

? changes in general economic conditions in our primary service areas,

? our compliance with governmental regulations,

? the outcome of future litigation, if any,

? potential decreases in our year to year contract backlog,

projects that conforms to contract specifications and in a time frame that

? the cyclical nature of the construction industry,

? our exposure to increased interest expense payments should interest rates

Investors and shareholders should carefully consider such risks, uncertainties and other information, disclosures and discussions which contain cautionary statements identifying important factors that could cause actual results to differ materially from those provided in the forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Overview; Potential Effect of the COVID-19 Outbreak

e) in the event that any of the states in which we sell our products and services may eliminate, cancel, or delay projects due to monetary limitations resulting from the COVID-19 outbreak; in this respect, the Company had previously seen a reduction in bidding activity;

f) the reduction of state infrastructure budgets due to the reduction in funding through the gas tax, or other funding sources;

g) in the event of an increase in the overall loan defaults, which in turn impacts the banking sector's ability to fund projects in which the Company's products may be utilized; and

Three and six months ended June 30, 2022, compared to the three and six months ended June 30, 2021

Liquidity and Capital Resources (dollar amounts in thousands)

Reference is made to "Overview; Potential Effect of the COVID-19 Outbreak" above in the context of the discussion below.

The Company additionally has 2 smaller installment loans with annual interest rates of 2.90% and 3.99%, maturing in 2025, with balances totaling $61.

The Company's outstanding notes payable are financed at fixed rates of interest. This leaves the Company almost impervious to fluctuating interest rates.

Critical Accounting Policies and Estimates

The Company's critical accounting policies are more fully described in its Summary of Accounting Policies to the Company's consolidated financial statements on Form 10-K for the year ended December 31, 2021. There have been no changes as of June 30, 2022.

As of August 1, 2022, the Company's sales backlog was approximately $35.7 million, as compared to approximately $26.0 million at the same time in 2021. It is estimated that the majority of the projects in the sales backlog will be produced within 12 months, with a portion extending several years.

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