6. INVENTORY

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

INVENTORY

Inventory as of March 31, 2015 and December 31, 2014 consists of the following:

	March 31, 2015			December 31, 2014
	(Unaudited)			(Audited)
Raw materials	$	-		$	-
Finished goods		903,031			923,565
Inventory in transit		-			-
Inventory reserve		(50,000	)		(40,215	)
Total	$	853,031		$	883,350

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 March 31, 2015.

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.