INVENTORY

6 Months Ended

Jun. 30, 2020

INVENTORY

INVENTORY

NOTE 2. - INVENTORY

Inventories are valued at the lower of historical cost or net realizable value. Cost is determined using an average cost method for tobacco leaf inventory and raw materials inventory and standard cost is primarily used for finished goods inventory. Inventories are evaluated to determine whether any amounts are not recoverable based on slow moving or obsolete condition and are written off or reserved as appropriate. Inventories at June 30, 2020 and December 31, 2019 consisted of the following:

	June 30,		December 31,
	2020		2019
Inventory - tobacco leaf	$	1,191	$	1,178
Inventory - finished goods
Cigarettes and filtered cigars		212		106
Inventory - raw materials
Cigarette and filtered cigar components		1,466		1,082
Less: inventory reserve		(100)		(100)
	$	2,769	$	2,266