Annual report pursuant to Section 13 and 15(d)

Inventories

v3.8.0.1
Inventories
 12 Months Ended
Dec. 31, 2017
Inventory Disclosure [Abstract]  
Inventories
Note 4 — Inventories
 
Inventories, net consisted of the following:
 
 
 
December 31,
 
 
 
2017
 
2016
 
Raw materials
 
$
222,436
 
$
363,195
 
Finished goods
 
 
149,370
 
 
941,921
 
 
 
 
371,806
 
 
1,305,116
 
Reserve for obsolescence
 
 
(120,443)
 
 
(59,969)
 
 
 
$
251,363
 
$
1,245,147
 
 
In 2017, the Company recorded a net charge of $673,102 for excess and obsolete inventory in connection with the end-of-life of the Company’s legacy products. The excess and obsolete inventory charge was net of a cash recovery of $12,891 for inventory that was reserved in the year ended December 31, 2016. The net charge is reflected within the cost of product revenue line item of the statement of operations. In 2017, the Company also recorded a non-cash charge of $74,792 in connection with the write-down of component inventory utilized in research and development activities. This charge is reflected within the research and development line item of the statement of operations.