BALANCE SHEET COMPONENTS

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS

(4) BALANCE SHEET COMPONENTS

Inventories

Inventories, net consists of the following:

	September 30, 2022		December 31, 2021
Raw materials	$	526,469	$	1,047,156
Work in process		4,817,935		7,540
Finished goods		24,968,458		32,836,591
	$	30,312,862	$	33,891,287

Finished goods includes consigned inventory held by our customers of $3.8 million and $4.5 million at September 30, 2022 and December 31, 2021, respectively and includes in-transit inventory of $1.3 million and $6.3 million at September 30, 2022 and December 31, 2021, respectively. The Company reviews inventory for obsolete and slow-moving products each quarter and makes provisions based on its estimate of the probability that the material will not be consumed or that it will be sold below cost. The inventory reserves were $1.6 million and $0.8 million as of September 30, 2022, and December 31, 2021, respectively.

Accrued expenses

Accrued expenses consist of the following:

	September 30, 2022		December 31, 2021
Inventory purchases	$	153,926	$	287,571
Payroll & related benefits		700,844		210,495
Professional fees		470,738		229,597
Royalty costs		1,650,000		1,588,025
Sales allowances		2,130,272		1,958,050
Sales and use tax		66,888		50,916
Other		448,850		955,263
	$	5,621,518	$	5,279,917