INVENTORY AND DEPOSITS

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

INVENTORY AND DEPOSITS

NOTE 3 – INVENTORY AND DEPOSITS

Inventory and deposits include the following:

	June 30, 2024		December 31, 2023
	(unaudited)		(audited)
Inventory – Finished Goods and Work in Progress	$	4,348,031	$	4,017,381
Inventory – Raw Materials		2,009,087		1,770,612
Total Inventory	$	6,357,118	$	5,787,993

The Company accounts for excess or obsolete inventory with a reserve that is established based on management’s estimates of the net realizable value of the related products. These reserves are product specific and are based upon analyses of product lines that are slow moving or expected to become obsolete due to significant product enhancements.

Included in inventory – finished goods and work in progress is approximately $60,000 in finished products related to our American Rebel branded beer lager as of June 30, 2024. This inventory is immediately available to the consumer and for distribution. During the three and six-month periods ended June 30, 2024 we wrote off approximately $180,000 and $180,000, respectively, of this finished product branded beer lager inventory. This is considered a one-time event.

When inventory is physically disposed of, we account for the write-offs by making a debit to the reserve and a credit to inventory for the standard cost of the inventory item. Our valuation reserve is applied as an estimate to specific product lines. Since the inventory item retains its standard cost until it is either sold or written off, the reserve estimates will differ from the actual write-off. There were no other material write-offs or inventory reserves during the three and six-months ended June 30, 2024 and 2023 other than what is described above with respect to our branded beer lager.