7. INVENTORY

12 Months Ended

Dec. 31, 2014

Inventory Disclosure [Abstract]

INVENTORY

Inventory as of December 31, 2014 and December 31, 2013 consists of the following:

	December 31, 2014			December 31, 2013
	(Audited)			(Audited)
Raw materials	$	-		$	94,681
Finished goods		923,565			1,028,037
Inventory in transit		-			221,728
Inventory reserve		(40,215	)		(90,725	)
Total	$	883,350		$	1,253,721

Finished goods inventory relates to product at the Company’s retail stores, which is product purchased from distributors, and in some cases directly from the manufacturer, and resold at our stores. Inventory in transit relates to product purchased by the Company but which had not been received as of December 31, 2014.

The Company reviews its inventory on a periodic basis to identify products that are slow moving and/or obsolete, and if such products are identified, the Company records the appropriate inventory impairment charge at such time.