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INVENTORY

3 Months Ended

Dec. 31, 2023

NOTE 5 – INVENTORY

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


	December 31, 2023			September 30, 2023
Inventory
Work in process	$	4,010,456		$	3,136,590
Raw materials		18,524,512			13,733,385
Finished goods		226,009			—
Finished goods delivered to dealer for distribution		7,958,552			937,322
Less: write-down to net realizable value		—			(1,000,284)
Total Inventory	$	30,719,529		$	16,807,013

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 relevant 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 three months ended December 31, 2023, approximately $65 thousand of the Company's inventories was consumed for R&D activities, which was recognized as part of research and development expense in the consolidated condensed statement of operations.