NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventory (Policies)

Jun. 30, 2023

June 30, 2023

Inventory

Inventory

Inventories consist of health supplements held for sale in the ordinary course of business. The Company uses the weighted average cost method to value its inventories at the lower of cost and net realizable value. In pursuant to ASC 330-10-50-6, the components of inventory cost include raw materials, labor, and overhead. Additionally, the weighted average cost per unit is used as a basis to determine the cost amounts removed from inventory as the aggregate number of units expected to be delivered under each order. Finally, the net realizable value is determined by using the various factors as following: excess or slow-moving inventories (12 months or more of inventory on hand), expiration dates (within 12 months of the current reporting period), current and future product demand, production planning, and market conditions. If any of these factors are found in the reporting period, management will review each item and determine if any additional allowances or write-offs need to be made. A change in any of these variable’s factors could result in an adjustment to inventory.

An allowance for inventory was established in 2018 and is evaluated each quarter to determine if all items are still sellable due to the factors listed above. As of June 30, 2023 and 2022, the total of inventory allowance was $1,914,891 and $1,914,891. The following are the classes held in inventory as of June 30, 2023 and 2022:

	JUNE 30,			DECEMBER 31,
	2023			2022
Inventory
Inventory Classes:
Raw Materials	$	3,087,777	$		3,398,655
Finished Goods		285,993			310,600
Work in process		5,816			24,764
Total inventory		3,379,516			3,734,019
Inventory allowance		(1,914,891)			(1,914,891)
Total inventory, net		1,464,625			1,819,128

December 31, 2022

Inventory

Inventory

Inventories consist of health supplements held for sale in the ordinary course of business. The Company uses the weighted average cost method to value its inventories at the lower of cost and net realizable value. In pursuant to ASC 330-10-50-6, the components of inventory cost include raw materials, labor, and overhead. Additionally, the weighted average cost per unit is used as a basis to determine the cost amounts removed from inventory as the aggregate number of units expected to be delivered under each order. Finally, the net realizable value is determined by using the various factors as following: excess or slow-moving inventories (12 months or more of inventory on hand), expiration dates (within 12 months of the current reporting period), current and future product demand, production planning, and market conditions. If any of these factors are found in the reporting period, management will review each item and determine if any additional allowances or write-offs need to be made. A change in any of these variable’s factors could result in an adjustment to inventory.

An allowance for inventory was established in 2018 and is evaluated each quarter to determine if all items are still sellable due to the factors listed above. As of December 31, 2022 and 2021, the total of inventory allowance was $1,914,891 and $1,914,891.  In 2022, the Company directly wrote-off $96,811 related to inventory shrinkage with no impact to our inventory allowance. For the year-ending 2021, the allowance for inventory was increased by $22,883 due to some expiring inventory.  The following are the classes held in inventory as of December 31, 2022 and 2021:

	DECEMBER 31,		DECEMBER 31,
	2022		2021
Inventory
Inventory Classes:
Raw Materials	$	3,398,655	$	3,672,699
Finished Goods		310,600		194,490
Work in process		24,764		5,668
Total inventory		3,734,019		3,872,857
Inventory allowance		(1,914,891)		(1,914,891)
Total inventory, net		1,819,128		1,957,966