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2 - INVENTORY
12 Months Ended
Dec. 31, 2017
Inventory Disclosure [Abstract]  
Inventory Disclosure [Text Block]
2  -  INVENTORY

Inventory, consisting principally of products held for resale, is stated at the lower of cost, using the first-in, first-out method, or net realizable value.  The amount presented in the accompanying consolidated balance sheet is net of valuation allowances of $7,848,000 and $8,537,000 at December 31, 2017 and 2016, respectively.

Based upon regular evaluations of inventory to identify costs in excess of the lower of cost or net realizable value and slow-moving inventory, we increased our reserves by $180,000 and $3,640,000 for the years ended December 31, 2017 and 2016, respectively, and such amounts were recorded as costs of goods sold.

In 2016, we recorded a $3,640,000 increase to our inventory reserves.  We believe this significant increase was a reasonable estimate to allow for the potential obsolescence and lower valuation of our vast inventory of electronic component products as a result of the shift in our marketing focus.  Historically, under our superstore strategy, these types of products were intentionally held in large quantities for the rapid delivery distribution requirements of our customers.  However, with the shift in our marketing strategy to primarily focus on our custom products designed for specific applications to OEM customers, and away from marketing our superstore strategy, our remaining component inventory will be more passively marketed and distributed online through our website shopping portal at potentially lower rates due to the pricing pressures normally attributed with online shopping.  Based upon this change to our primary ongoing marketing efforts, we believe the reserve increase for existing inventory was necessary for 2016.