Inventory consists of raw materials for Edible Garden’s herb, produce, and floral product lines and IVXX’s line of cannabis pure concentrates. Work-In-Progress consists of live plants grown for Edible Garden’s herb, produce, and floral product lines along with IVXX’s line of cannabis pure concentrates. Finished goods consists of Blum’s, MediFarm’s and IVXX’s line of cannabis packaged to be sold to the patients and into dispensaries. Cost of goods sold is calculated using the average costing method. The Company reviews its inventory periodically to determine net realizable value. The Company writes down inventory, if required, based on forecasted demand. These factors are impacted by market and economic conditions, new products introductions, and require estimates that may include uncertain elements. Inventory at September 30, 2016 and December 31, 2015 consisted of the following: