INVENTORIES, NET |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INVENTORIES, NET | Note 4. INVENTORIES, NET
Inventory consists of the following:
The FDNS inventory consists of products purchased by Wellgistics, LLC from First Defense Nasal Screen Corp (“FDNS”). Following a legal dispute with the supplier, the Company was awarded $4.6 million, which has not been recognized due to uncertainty of receipt. Pursuant to the United States Bankruptcy Court order dated March 15, 2023, the Company was awarded full possession of the FDNS inventory and receives a monthly plan payment of $3,014, which is recognized in other income in the unaudited condensed consolidated statements of operations.
The FDNS inventory has experienced minimal sales activity and management has determined there is no active market for the product. Based on this assessment, the carrying value was deemed not recoverable, and a reserve for obsolescence of $5,988,257 was fully recorded during the year ended December 31, 2025 and remained unchanged as of March 31, 2026.
During the three months ended March 31, 2026, the Company recorded an additional reserve for obsolescence of $17,967 related to finished goods inventory, included in cost of net revenues in the unaudited condensed consolidated statements of operations.
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