Note 7 – Inventory

Inventory consists of finished goods, components and raw materials. The Company’s inventory is stated at the lower of cost (FIFO cost basis) or net realizable value.

The carrying value of inventory consisted of the following:

As of January 22, 2015, inventory was pledged to Knight under the Loan Agreement (see note 12). During the three months ended March 31, 2025 and 2024, the Company had no inventory write-offs.