Annual report pursuant to Section 13 and 15(d)

Inventories, Net

v3.20.1
Inventories, Net
12 Months Ended
Dec. 31, 2019
Inventories, Net  
Inventories

Note 4 — Inventories, Net

Inventories consisted of the following:

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

    

2019

    

2018

Purchased Parts and Components

 

$

5,985,214

 

$

3,284,848

Work in Process

 

 

2,414,142

 

 

1,523,616

Finished Goods

 

 

2,096,744

 

 

2,837,183

Less: Reserve for Obsolescence

 

 

(4,788,233)

 

 

(363,845)

Inventories, Net

 

$

5,707,867

 

$

7,281,802

 

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.