Annual report pursuant to Section 13 and 15(d)

Inventories, Net

v3.8.0.1
Inventories, Net
12 Months Ended
Dec. 31, 2017
Inventory Disclosure [Abstract]  
Inventories
Note 2 — Inventories, Net
 
Inventories consisted of the following: 
 
 
 
December 31,
2017
 
December 31,
2016
 
 
 
 
 
 
 
 
 
Purchased Parts and Components
 
$
1,669,209
 
$
1,990,026
 
Work in Process
 
 
25,090
 
 
454,120
 
Finished Goods
 
 
2,994,342
 
 
831,069
 
Less: Reserve for Obsolescence
 
 
(836,324)
 
 
(623,997)
 
 
 
 
 
 
 
 
 
Net
 
$
3,852,317
 
$
2,651,218
 
 
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, as well as accrued all related contractual obligations, resulting from the decision in the third quarter of 2017 to further reduce the suggested retail selling price to a price below the cost. The loss totaled $1,151,482 for the year ended December 31, 2017 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. As of December 31, 2016, 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 for that 2016 period 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. These provisions have been included in Operating Expenses on the Consolidated Statement of Operations.