Write down on old inventory is standard accounting practice Guys and Gals
Writing down old inventory is standard accounting, regardless of the industry.
Auto Sector does it with aging inventory, to combat depreciation
Retail clothing does it via clearance isles, and your now famous outlets - winners, Marshall's, Saks off Fifth
Food distributors as well, clearance isles, managers specials, etc.
At the end of the day, we should be happy the company had the foresight to take this pill now, and not write off the entire lot. There are lots of companies out there who are shortsighted, and would never recognize this impairment, all the while fooling investors to assume everything is perfect.
Without that impairment, the co sits at 1.5m in net earnings. Either way, not detrimental to the business. Revenue is up, Retail is flying, and the production cost is down.
All great things. See you all in March, for year end!!