|9 Months Ended|
Sep. 30, 2016
|Notes to Financial Statements|
|Note 5. INVENTORY||
Inventory consists of raw materials for Edible Gardens herb, produce, and floral product lines and IVXXs line of cannabis pure concentrates. Work-In-Progress consists of live plants grown for Edible Gardens herb, produce, and floral product lines along with IVXXs line of cannabis pure concentrates. Finished goods consists of Blums, MediFarms and IVXXs line of cannabis packaged to be sold to the patients and into dispensaries. Cost of goods sold is calculated using the average costing method. The Company reviews its inventory periodically to determine net realizable value. The Company writes down inventory, if required, based on forecasted demand. These factors are impacted by market and economic conditions, new products introductions, and require estimates that may include uncertain elements. Inventory at September 30, 2016 and December 31, 2015 consisted of the following:
The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory.
Reference 1: http://www.xbrl.org/2003/role/presentationRef