General form of registration statement for all companies including face-amount certificate companies

INVENTORIES

v3.20.4
INVENTORIES
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
INVENTORIES    
INVENTORIES

4.INVENTORIES

Inventories consist of the following:

 

 

 

 

 

 

 

 

 

    

December 31, 

    

September 30, 

 

 

2020

 

2020

Finished Goods

 

$

300,009

 

$

 —

Goods-in-process

 

 

715,731

 

 

967,993

Total

 

$

1,015,740

 

$

967,993

 

The Company capitalizes inventory that has been produced for commercial sale and has been determined to have a probable future economic benefit. The determination of whether or not the inventory has a future economic benefit requires estimates by management. Our inventory levels are analyzed to identify inventory that may expire prior to sale. To the extent that inventory is expected to expire prior to being sold,  the Company will write down the value of inventory.

5.          INVENTORIES

Inventories consist of the following:

 

 

 

 

 

 

 

 

    

September 30, 

    

September 30, 

 

 

2020

 

2019

Goods-in-process

 

$

1,028,378

 

$

328,500

 

 

 

 

 

 

 

Raw Material

 

 

 —

 

 

18,147

Inventory Reserves

 

 

(60,385)

 

 

 —

Total

 

$

967,993

 

$

346,647

 

The increase in inventory is due to continued manufacturing and receipt of product in preparation for commercialization. There was no reserve as of September 30, 2019. Included in research and development expense for the year ended September 30, 2020 is an increase to the inventory reserve of $60,385 which the majority of which is attributable to required product testing during the manufacturing process. In determining net realizable value, appropriate consideration is given to obsolescence, excessive levels, deterioration, and other factors in evaluating net realizable value.