As of September 30, 2025 and December 31, 2024 the Company's inventory consisted of raw materials, material overhead, labor, and manufacturing overhead, categorized as follows:


	September 30, 2025			December 31, 2024
Finished goods	$	7,774,138		$	8,816,867
Overhead allocated to inventory		3,148,171			4,993,947
Packaging materials		1,650,515			1,639,608
Work in progress		3,312,468			4,556,718
Raw materials		1,016,102			1,401,408
Inventory Reserve - Allowance for Obsolescence		(5,377,125	)		(1,095,233	)
Total inventory	$	11,524,269		$	20,313,315

During the three and nine month periods ended three and nine months ended September 30, 2025, the Company recorded reserves of $5,377,125 for obsolescence for SKUs which the Company has discontinued and the related work in progress, raw materials, and packaging.

The company had reported a total of $19,923 and $55,796 in prepaid inventory as of September 30, 2025 and December 31, 2024, respectively. Prepaid inventory primarily consists of deposits and advance payments to suppliers for the purchase of raw materials and finished goods expected to be received and utilized in production within the next financial period, which have not been shipped as of the balance sheet date.

The Company accounts for prepaid inventory at cost, which includes all charges necessary to bring the inventory items to their present location and condition. Upon shipment of the inventory, these amounts are reclassified from prepaid inventory to the appropriate inventory accounts on the balance sheet.