Balance Sheet Information |
3 Months Ended |
|---|---|
Dec. 31, 2021 | |
| Balance Sheet Information [Abstract] | |
| Balance Sheet Information | Note 6 – Balance Sheet Information Inventory Inventories are valued at the lower of cost or net realizable value. The cost is determined using the first-in, first-out (FIFO) method. Inventories are also written down for management’s estimates of product which will not sell prior to its expiration date. Write-downs of inventories establish a new cost basis which is not increased for future increases in the net realizable value of inventories or changes in estimated obsolescence. Inventory consisted of the following at December 31, 2021 and September 30, 2021: December 31, September 30, 2021 2021 Raw material$ 1,293,536 $ 1,371,133Work in process 55,285 112,915Finished goods 4,043,959 4,547,690Inventory, gross 5,392,780 6,031,738Less: inventory reserves (492,912) (457,485)Inventory, net$ 4,899,868 $ 5,574,253 Fixed Assets We record equipment, furniture and fixtures, and leasehold improvements at historical cost. Expenditures for maintenance and repairs are recorded to expense. Depreciation and amortization are primarily computed using the straight-line method. Depreciation and amortization are computed over the estimated useful lives of the respective assets. Leasehold improvements are depreciated on a straight-line basis over the lesser of the remaining lease term or the estimated useful lives of the improvements. Plant and equipment consisted of the following at December 31, 2021 and September 30, 2021: Estimated December 31, September 30, Useful Life 2021 2021Plant and equipment: Manufacturing equipment5 - 8 years $ 2,876,800 $ 2,875,744Office equipment, furniture and fixtures3 - 10 years 1,147,209 991,146Leasehold improvements3 - 8 years 443,976 298,886Total plant and equipment 4,467,985 4,165,776Less: accumulated depreciation and amortization (3,598,543) (3,573,173)Plant and equipment, net $ 869,442 $ 592,603 Depreciation expense was approximately $25,000 and $32,000 for the three months ended December 31, 2021 and 2020, respectively. Plant and equipment includes $484,000 and $210,000 at December 31, 2021 and September 30, 2021, respectively, for deposits on equipment, furniture, and leasehold improvements, which have not been placed into service; therefore, the Company has not started to record depreciation expense. |