So this is my guess as to what constitutes as inventory for Alexium. (to be confirmed by management.)
Customer puts in an order to Alexium.
Alexium puts in an order to toll manufacturer, toll manufacturer starts production and invoices Alexium. This invoice is entered against inventory for Alexium.
Emulsion is completed and shipped to client. Alexium invoices client and recognizes revenue. Inventory becomes COGS.
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