INVENTORY AND DEPOSITS

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

INVENTORY AND DEPOSITS

NOTE 4 – INVENTORY AND DEPOSITS

Inventory and deposits include the following:

	September 30, 2024			December 31, 2023
	(Unaudited)			(Audited)
Inventory – raw materials	$	1,970,586		$	2,152,823
Inventory – finished goods		3,572,809			3,538,134
Less reserve for excess and obsolete inventory		(222,595	)		(116,586	)
Total Inventory	$	5,320,800		$	5,574,371

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 $218,000 in finished products related to our American Rebel branded beer lager as of September 30, 2024. This inventory is immediately available to the consumer and for distribution. During the three and nine-month periods ended September 30, 2024 the Company wrote off approximately $180,000 and $180,000, respectively, of this finished product branded beer lager inventory.

When inventory is physically disposed of, the Company accounts for the write-offs by making a debit to the reserve and a credit to inventory for the standard cost of the inventory item. The 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 nine-months ended September 30, 2024 and 2023 other than what is described above with respect to our branded beer lager.