Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  

Raw materials consist of Edible Garden’s herb product lines and IVXX’s line of cannabis pure concentrates. Work-in-progress consists of live plants grown for Edible Garden’s herb product lines, live plants grown at Black Oak, and IVXX’s line of cannabis pure concentrates. Finished goods consists of IVXX’s line of cannabis packaged products to be sold into dispensaries, and Edible Gardens products to be sold via food, drug, and mass channels.


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.


As of March 31, 2017 and December 31, 2016, inventory consisted of the following:



March 31,



December 31,


Raw Materials   $ 453,442     $ 486,119  
Work-in-Progress     740,877       570,145  
Finished Goods     923,538       853,066  
Total Inventory   $ 2,117,857     $ 1,909,330