Annual report pursuant to Section 13 and 15(d)

INVENTORY

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INVENTORY
12 Months Ended
Dec. 31, 2019
Inventory Disclosure [Abstract]  
INVENTORY

Inventory, net consisted of the following: 

    December 31,2019     December 31,2018  
             
Finished goods – hemp flowers and hemp cuttings   $ 1,337,809     $ -  
                 

 

During the year ended December 31, 2019, the Company recorded a reserve or inventory write-off related to inventory of $723,391 which is equal to the difference between the cost of the inventory and its estimated net realizable value and is included in cost of sales as reflected in the accompanying consolidated statements of operations. Additionally, during the year ended December 31, 2019, the Company fully impaired the finished goods related to purchased CBD products from C2M and resulted in an impairment loss of $837,153 which is included in cost of sales on the consolidated statements of operations (see Note 3).