Inventory

12 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Inventory

3. Inventory

As of June 30, inventory consisted of the following:

	June 30, 2019			June 30, 2018
Inventory on-hand:
Raw material and work in process	$	5,385,478		$	2,804,764
Finished goods		3,765,254			506,720
		9,150,732			3,311,484
Allowance for obsolete inventory		(2,201,699	)		(300,000	)
	$	6,949,033		$	3,011,484

The Company is transferring inventory between contract manufacturing companies. We have estimated that 20% of the raw materials and work in process may be deemed obsolete at the conclusion of the transfer process because of changes made to components during the initial rollout of alpha units during 2018. Finished goods inventory contains units that have been recalled from the field due to real or perceived mechanical failures. We estimate 25% of these units may not be recoverable during our inspection and reclamation process.

$1,484,438 and $5,152,897 prepaid inventory represents payments for raw material that has not been received by the Company as of June 30, 2019 and 2018, respectively.

See Note 14 for purchase commitments from our manufacturers for inventory.