INVENTORIES

12 Months Ended

Dec. 31, 2023

Inventories consist of the following:


	December 31,
	2023		2022

Harvested hemp and seeds	$	9,300	$	34,763
Raw materials	9,726		10,960
Finished goods	6,320		13,237
	25,346		58,960
Less: inventory provision	(3,808)		(32,007)
Total	$	21,538	$	26,953

Inventory Provision

For the year ended December 31, 2023, inventory provisions of $1,039 were expensed through cost of goods sold in the consolidated statements of operations. For the year ended December 31, 2023, write-offs of inventory previously reserved for of $29,238 were recognized. During the current year, the Company sold harvested hemp that had a full inventory provision as of December 31, 2022. The sale of hemp resulted in a $12,854 reduction to the inventory provision as of December 31, 2023. For the year ended December 31, 2022, inventory provisions of $23,394 were expensed through cost of goods sold. The increase was primarily due to an additional reserve for Hemp inventory of $20,349 based on the Company's determination during the fourth quarter that this inventory would no longer be used in product formulations as a result of Colorado's anticipated regulatory changes based on Senate Bill 22-205. For the year ended December 31, 2022, write-offs of inventory previously reserved for of $6,722 were recognized.