Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  

Raw materials consist of Edible Garden’s herb product lines and material for IVXX’s line of cannabis pure concentrates. Work-in-progress consists of live plants grown for Edible Garden’s herb product lines and live plants grown at Black Oak. Finished goods consists of IVXX’s line of cannabis packaged products to be sold into dispensaries, and Edible Garden’s 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 NRV. 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 June 30, 2017 and December 31, 2016, inventory consisted of the following:



June 30,



December 31,


Raw Materials   $ 1,010,401     $ 486,119  
Work-in-Progress     1,179,647       570,145  
Finished Goods     1,043,024       853,066  
Total Inventory   $ 3,233,072     $ 1,909,330