v3.26.1
INVENTORY
6 Months Ended
Jun. 30, 2026
Inventory Disclosure [Abstract]  
INVENTORY

8. INVENTORY

 

Inventory consist of the following at June 30, 2026 and December 31, 2025:

 

   June 30, 2026   December 31, 2025 
         
Finished goods  $502,115   $10,512,215 
Reserve for obsolescence   -    (2,700,000)
Total inventory  $502,115   $7,812,215 

 

The reserve for obsolescence was $0 and $2,700,000 as of June 30, 2026 and December 31, 2025, respectively. During the six months ended June 30, 2026, the Company determined that inventory funded by the Company and held offsite by the Company’s largest customer had been disposed of by the customer without the Company’s authorization. Upon that determination, the affected inventory, having an aggregate carrying value of $5,211,824, was removed from inventory and a corresponding receivable was recognized in the same amount for the amount recoverable from the customer with respect to that disposition. The receivable was fully reserved given the customer’s financial condition. See Note 7 — Accounts Receivable for further discussion.