NOTE 3 – INVENTORY

Inventory consists of the following as of December 31:

On January 5, 2016, the Company was informed by one of its production partners that there were certain technical issues which, together with other business and regulatory issues, materially impede the formulation of one of its potential products as a commercially viable product for the consumer health market. The Company, therefore, decided to suspend development of this product line. In evaluating this triggering event and the diminished utility of the materials used in the production of this potential commercial product, the Company considered the impact of ASC No. 330, Accounting for Inventory, and recognized a loss on impairment of $958,575 as of December 31, 2015.

As of December 31, 2016, inventory in the amount of $10,827 consisted of products available for sale and was unrelated to the inventory impaired as of December 31, 2015.