RE:RE:All doom and gloom?Finished product inventory actually decreased by 500k, but yes, the raw material inventory doubled. So, I am not sure the actual hit is $5m. All companies are going to carry some inventory of finished product so for arguement sake let's say 1/2 is supply chain inventory bringing down finished product to 1.5m and call $1m of raw obsolete.
We get $2.5m to write off...as I am not an accountant, where would that hit the financials? A one time expense? and then an add to cash flow as you have at one point or another taken it out of cash flow at each increase?
I am just wondering if the company can survive cleaning up the mistakes of the past. Perhaps it is worth $0.50 on the dollar - somebody would figure a use for it if the price is right.