NOTE 3 - INVENTORY

Inventory includes the following:

 SCHEDULE OF INVENTORY

The Company accounts for excess and obsolete inventory with a reserve that is established based on management’s estimates of the net realizable value of the related products. These reserves are product specific and are based upon analyses of product lines that are slow moving or expected to become obsolete due to significant product enhancements.

Included in finished goods is approximately $291,000 and $162,000 in finished products related to our American Rebel branded beer lager as of December 31, 2025 and 2024, respectively. This inventory is immediately available to the consumer and for distribution. For the years ended December 31, 2025 and 2024, the Company wrote off approximately $1,000 and $180,000, respectively, of beer lager inventory, the latter which corresponded to the initial brew of the product.

When inventory is physically disposed of, the Company accounts for the write-offs by making a debit to the reserve and a credit to inventory for the standard cost of the inventory item. The valuation reserve is applied as an estimate to specific product lines. Since the inventory item retains its standard cost until it is either sold or written off, the reserve estimates will differ from the actual write-off. The Company wrote-off approximately $247,000 and $0 of inventory during the years ended December 31, 2025 and 2024, respectively.