BALANCE SHEET COMPONENTS

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS

(4) BALANCE SHEET COMPONENTS

Inventories

Inventories, net consists of the following:

	June 30, 2022		December 31, 2021
Raw materials	$	2,294,111	$	1,047,156
Finished goods		32,046,753		32,844,131
	$	34,340,864	$	33,891,287

Finished goods includes consigned inventory held by our customers of $4.6 million and $4.5 million at June 30, 2022 and December 31, 2021, respectively and includes in-transit inventory of $7.1 million and $6.3 million at June 30, 2022 and December 31, 2021, respectively. The Company reviews inventory for obsolete and slow-moving products each quarter and makes provisions based on its estimate of the probability that the material will not be consumed or that it will be sold below cost. The inventory reserves were $1.1 million and $0.8 million as of June 30, 2022 and December 31, 2021, respectively.

Accrued expenses

Accrued expenses consist of the following:

	June 30, 2022		December 31, 2021
Inventory purchases	$	—	$	287,571
Payroll & related benefits		239,284		210,495
Professional fees		274,889		229,597
Royalty costs		1,650,000		1,588,025
Sales allowances		1,858,580		1,958,050
Sales and use tax		61,896		50,916
Other		694,384		955,263
	$	4,779,033	$	5,279,917