Inventories

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Inventory, Net [Abstract]

INVENTORIES

NOTE 5—INVENTORIES

At September 30, 2019 and December 31, 2018, the inventory balances are composed of:

	September 30, 2019			December 31, 2018
Machinery and Equipment	$	189,452		$	427,551
Parts		155,252			159,685
Appliances		1,979,773			-
Furniture		303,845			-
Other		41,941			-
Subtotal		2,670,263			587,236
Allowance for inventory obsolescence		(99,546	)		(99,546	)
Inventories, net	$	2,570,717		$	487,690

Following is a summary of transactions in the allowance for inventory obsolescence:

	September 30, 2019		December 31, 2018
Balance at beginning of period	$	99,546	$	70,000
Provisions for obsolescence		-		48,000
Write-down in inventory value		-		(18,454	)
Balance at end of period	$	99,546	$	99,546

Inventory and accounts receivable are pledged to secure a loan from Burnley, SBCC and Home State Bank described and defined in the notes below.

NOTE 4—INVENTORIES

At December 31, 2018 and 2017, the inventory balances are composed of:

	2018			2017
Machinery & Equipment	$	427,551		$	715,483
Parts		159,685			191,088
Subtotal		587,236			906,571
Allowance for inventory obsolescence		(99,546	)		(70,000	)
Inventory, net	$	487,690		$	836,571

Following is a summary of transactions in the allowance for inventory obsolescence for the years-ended December 31, 2018 and 2017:

	2018			2017
Balance at beginning of period	$	70,000		$	-
Provisions for obsolescence		48,000			70,000
Write-down in inventory value		(18,454	)		-
Balance at end of period	$	99,546		$	70,000

At December 31, 2018, $108,124 of Machinery and Equipment inventory was pledged to secure floor plan loans. The remaining inventory is pledged to secure a loan from Home State Bank and a capital lease from Utica.