Annual report pursuant to Section 13 and 15(d)

Inventory

v3.19.1
Inventory
12 Months Ended
Dec. 31, 2018
Inventory Disclosure [Abstract]  
INVENTORY
2. INVENTORY

 

As of December 31, 2018, and 2017, inventory consisted of the following:

 

    2018     2017  
Raw materials   $ 4,319,637     $ 3,205,618  
Work in process     702,079       1,416,324  
Finished goods     -       -  
      5,021,716       -  
Less: Inventory reserve     2,488,100       -  
    $ 2,533,616     $ 4,621,942  

 

During the year ended December 31, 2018, the Company recorded an inventory reserve of approximately $2.5 million. The increase in reserve related to the Company’s strategic switch from the legacy E-GEN/E-100 platform to our N-GEN platform, which occurred in the fourth quarter of 2018. Certain raw materials and work in process were unique to the E-GEN/E-100 vehicles and cannot currently be repurposed. As such, the company recorded a reserve related to these items.