NOTE 3 – INVENTORY

Inventory consists of the following:

In June 2023, the Company wrote down all remaining Torrot branded inventory in the amount of $84,000. During 2023, the Company wrote down the Volcon co-branded Torrot youth motorcycles in the amount of $2,674,352 to reduce their cost to the estimated net realizable value. The Company also wrote down all remaining Grunt inventory of $1,564,643 upon transfer of the inventory to the Company’s third party manufacturer. The Company has purchase commitments for future payments due for inventory of $1,894,842.