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INVENTORY

9 Months Ended

Jun. 30, 2023

NOTE 5 - INVENTORY

The Company's inventories are stated at the lower of cost or market and consist of the following:


		June 30, 2023
Inventory
Work in process			6,109,105
Raw materials			5,804,743
Supplies			232,996
Total Inventory		$	12,146,844

The cost of inventories is determined using a standard cost method, which approximates the first-in, first-out (FIFO) method. This includes direct materials, direct labor, and a share of manufacturing overhead costs. Variances between standard and actual costs are recognized in the cost of goods sold during the period in which they occur.

The Company regularly reviews its inventories for excess and obsolete items by assessing their net realizable value (NRV). The NRV is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

During the quarter ended June 30, 2023, $809,778 of the Company's inventories was consumed for R&D activities, which was recognized as part of research and development expense in the consolidated statement of operations. In addition, cost of goods sold of $242,069 and warranty reserve of $6,600 was incurred for the inventories sold.