Annual report pursuant to Section 13 and 15(d)

Inventories, Net

v3.6.0.2
Inventories, Net
12 Months Ended
Dec. 31, 2016
Inventory Disclosure [Abstract]  
Inventories
Note 3 — Inventories, Net
 
Inventories consisted of the following: 
 
 
 
December 31,
 
December, 31,
 
 
 
2016
 
2015
 
 
 
 
 
 
 
Purchased Parts and Components
 
$
1,990,026
 
$
3,069,261
 
Work in Process
 
 
454,120
 
 
154,880
 
Finished Goods
 
 
831,069
 
 
612,451
 
Less: Reserve for Obsolescence
 
 
(623,997)
 
 
(487,494)
 
 
 
 
 
 
 
 
 
Net
 
$
2,651,218
 
$
3,349,098
 
 
In addition to its normal Reserve for Obsolescence provision, the Company wrote-down to net realizable value all of its component and finished goods inventory related to its iWear Video Headphones resulting from the decision in early 2017 to reduce the suggested retail selling price to a price below the cost. The write down totaled $1,124,401 and reduced the carrying value of such inventory to its estimated net realizable value, net of the costs of completion of components and work in progress. This provision has been included in Operating Expenses on the Consolidated Statement of Operations.