T.T.G.G. Researching

[RadioSilent]

The tooling is HUGE. That isn't the value of inventory...that's the value of "tooling up" for a production situation. For example...we make doors. If we make a new style of door, we have to pay the CNC company to reprogram the CNC machines to cut holes in the proper places. That expense is Tooling. It's handled like a fixed asset...you recognize it, and expense it over time. Totally independent of the inventory itself, but represents a VERY solid indication that we are moving towards producing SOMETHING.

And, by the way, even if you're using a 3rd party manufacturer you'd have tooling expenses. They would pass their costs of preparing to build your product on to you, and you'd account for it as shown.