The auditors just ensure the financial documents are following generally accepted accounting practices. They do NOT assess true value of assets within the entity.
It is the minimum requirement to remain SEC compliant.
Also, $137,641 of "Tooling in Process" appeared from 2018 - Q1 10-Q. And then the same amount as on the current 10-k appeared in the 2018 - Q2 10-Q.
What did that amount to?
So, the tooling has been in process for 9-12 months and ZERO come to fruition.
Don't forget, all that occurred before new mgmt...so might just be dead asset to depreciate/write-off now.