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Inventories, Net

12 Months Ended

Dec. 31, 2023

Note 4 — Inventories, Net

Inventories consisted of the following:


	December 31,		December 31,
	2023		2022

Purchased Parts and Components	$	9,500,415	$	10,399,527
Work-in-Process		394,923		344,242
Finished Goods		4,880,643		1,941,689
Less: Reserve for Obsolescence		(5,775,551)		(1,417,489)

Inventories, Net	$	9,000,430	$	11,267,969

In addition to its normal Reserve for Obsolescence provision, the Company reserved as of December 31, 2023 additional provisions for expected surplus component parts and obsolescence in excess of its currently planned existing product builds in 2024 and into 2025 on most of its existing smart glass product models in anticipation of the planned introduction of newer models, which would logically replace the existing models when introduced. The disposal value of the excess components that could not be used in future models is unknown, so a 100% obsolescence provision has been accrued. The total reserve write-down recorded at December 31, 2023 was $2,700,000 and the Company increased its standard reserve by $1,658,000. The write-down and obsolescence provisions totaled $5,775,551 and $1,417,489 for the years ended December 31, 2023 and 2022, respectively. These provisions were included in Cost of Sales on the Consolidated Statements of Operations.

For the year ended December 31, 2022, the Company increased its standard Reserve for Obsolescence provision by $290,405 related to some of its accessories. The total write-down and obsolescence provision for finished goods and components recorded for the year ended December 31, 2021 was $519,950.