Quarterly report pursuant to Section 13 or 15(d)

Inventories, Net

v3.8.0.1
Inventories, Net
9 Months Ended
Sep. 30, 2017
Inventory Disclosure [Abstract]  
Inventories
Note 3 — Inventories, Net
  
Inventories are stated at the lower of cost and net realizable value and consisted of the following:
 
 
 
September 30, 
2017
 
 
December 31, 
2016
 
 
 
 
 
 
 
 
 
 
Purchased Parts and Components
 
$
2,069,378
 
 
$
1,990,026
 
Work in Process
 
 
212,444
 
 
 
454,120
 
Finished Goods
 
 
1,217,700
 
 
 
831,069
 
Less: Reserve for Obsolescence
 
 
(656,931)
 
 
 
(623,997)
 
Net
 
$
2,842,591
 
 
$
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 reduce the suggested retail selling price to a price below the cost. The loss totaled $1,151,482 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.