INVENTORY |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Note 4. INVENTORY |
Raw materials consist of Edible Gardens herb product lines and material for IVXXs line of cannabis pure concentrates. Work-in-progress consists of live plants grown for Edible Gardens herb product lines and live plants grown at Black Oak. Finished goods consists of IVXXs line of cannabis packaged products to be sold into dispensaries, and Edible Gardens products to be sold via food, drug, and mass channels.
Cost of goods sold is calculated using the average costing method. The Company reviews its inventory periodically to determine NRV. 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.
As of June 30, 2017 and December 31, 2016, inventory consisted of the following:
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