Annual report pursuant to Section 13 and 15(d)

Inventories, Net

v3.20.4
Inventories, Net
12 Months Ended
Dec. 31, 2020
Inventories, Net  
Inventories, Net

Note 3 — Inventories, Net

Inventories consisted of the following:

December 31, 

December 31, 

    

2020

    

2019

Purchased Parts and Components

$

5,252,709

$

5,985,214

Work-in-Process

 

1,381,677

 

2,414,142

Finished Goods

 

3,352,057

 

2,096,744

Less: Reserve for Obsolescence

 

(3,885,619)

 

(4,788,233)

Inventories, Net

$

6,100,824

$

5,707,867

In addition to its normal Reserve for Obsolescence provision, the Company reserved for (i) fifty percent of its finished goods inventory and all of its component parts related to its M300XL Smart Glasses product, as they are at a disadvantaged selling position against our newer, improved M400 product introduced in the fall of 2019 and our new M4000 product introduced in fourth quarter of 2020 and (ii) all of its finished goods inventory related to its Smart Swim product, as sales of this product have been negligible largely due to decreased venues for its use due to the current pandemic. The total reserve write-down recorded at December 31, 2020 was $773,235. In addition, the Company had previously written-down $500,600 through the third quarter of 2020 for its component parts related to its original Blade model, which was upgraded in the fall of 2020, and Smart Swim products. The write-down and obsolescence provision totaled $1,273,835 and $4,572,659 for the years ended December 31, 2020 and 2019, respectively. These provisions were included in Cost of Sales on the Consolidated Statements of Operations.