NOTE 3 - INVENTORY

Inventories primarily consist of bulk and bottled liquor and raw materials and are stated at the lower of cost or market. Cost is determined using an average costing methodology, which approximates cost under the first-in, first-out (“FIFO”) method. A portion of the Company’s finished goods inventory is held in warehouses located in several states that maintain control over the alcohol beverage distribution process until it is sold into the retail distribution channel within those states. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based primarily on the Company’s estimated forecast of product demand and production requirements. Such write-downs establish a new cost basis of accounting for the related inventory.

Inventories consisted of the following:

 SCHEDULE OF INVENTORY 

During the six months ended June 30, 2026, the Company recognized an impairment of $99,588 related to barrel inventory with a market price below the Company’s carrying value.

During the three months ended June 30, 2026, the Company entered into an agreement to acquire barrel inventory from a vendor in exchange for 1,500,000 shares of common stock with a fair value of $106,800 based on the closing price of the Company’s common stock at the agreement date. The Company received $71,675 of the inventory as of June 30, 2026 and received the remaining $35,125 in July 2026.