|12 Months Ended|
Dec. 31, 2019
Note 4 — Inventories, Net
Inventories consisted of the following:
In addition to its normal Reserve for Obsolescence provision, (i) the Company wrote down to net realizable value all of its component inventory parts related to its M300 and M300XL Smart Glasses products, resulting from the decision to end their production as they are at a disadvantaged selling position against our newer, improved M400 introduced in the fall of 2019. The total net realizable value write-down recorded at December 31, 2019 was $3,153,028, and (ii) the Company recorded an additional obsolescence provision of $1,419,631 related to its legacy M300 finished goods on hand as of December 31, 2019. The write-down and obsolescence provision totaled $4,572,659 for the year ended and as of December 31, 2019. These provisions were included in Cost of Sales on the Consolidated Statements of Operations.
The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef