Annual report pursuant to Section 13 and 15(d)

2. Summary of Significant Accounting Policies: Inventory (Policies)

v3.6.0.2
2. Summary of Significant Accounting Policies: Inventory (Policies)
12 Months Ended
Sep. 30, 2016
Policies  
Inventory

Inventory

Inventory is recorded at the lower of cost or market value, cost being determined using the first-in, first-out ("FIFO") method. Inventory consists of diabetic supplies.  Inventory held by distributors is reported as inventory until the supplies are shipped to the end user by the distributor.  The Company estimates an inventory reserve for obsolescence and excessive quantities.  Due to competitive pressures and technological innovation, it is possible that estimates of net realizable values could change in the near term.  During the year ended September 30, 2016, the Company disposed of $563,128 of inventory for which a reserve for obsolescence had previously been recorded.  Inventory consists of the following as of September 30:

 

 

2016

 

 

2015

 

Finished goods

$

206,444

 

 

$

206,038

 

Finished goods held by distributors

 

-

 

 

1,350,368

 

 

 

 

 

 

 

 

 

Total inventory

 

206,444

 

 

1,556,406

 

 

 

 

 

 

 

 

 

Inventory reserve

 

(1,708

)

 

(813,935

)

 

 

 

 

 

 

 

 

Net inventory

$

204,736

 

$

742,471