Quarterly report pursuant to Section 13 or 15(d)

INVENTORY

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INVENTORY
9 Months Ended
Sep. 30, 2021
INVENTORY  
INVENTORY

NOTE 2. - INVENTORY

Inventories are valued at the lower of historical cost or net realizable value. Cost is determined using an average cost method for tobacco leaf inventory, hemp/cannabis inventory, and raw materials inventory. Standard cost is primarily used for finished goods inventory. Inventories are evaluated to determine whether any amounts are not recoverable based on slow moving or obsolete condition and are written off or reserved as appropriate. During the nine months ended September 30, 2020, the Company wrote off inventory totaling $219 on the Company’s Consolidated Statement of Operations and Comprehensive Loss ($58 included within research and development expenses and $161 included within cost of goods sold).

Inventories at September 30, 2021 and December 31, 2020 consisted of the following:

    

September 30, 

    

December 31, 

    

2021

    

2020

Inventory - tobacco leaf

$

876

$

821

Inventory - hemp/cannabis

132

Inventory - finished goods

 

Cigarettes and filtered cigars

 

331

 

171

Inventory - raw materials

 

 

Cigarette and filtered cigar components

1,464

1,142

Less: inventory reserve

 

(100)

 

(100)

$

2,703

$

2,034