I followed up with our inventory manager, Andrew Lehr, regarding what amount we should report for inventory. He sent me a letter explaining the issues and the accounting treatment we took back in the second quarter of last year when reporting our 10-Q. In light of this, we are unable to reverse our write-off on the inventory in the second quarter and must report the inventory at $100. As of the balance sheet date, December 31, 20X5, we had an outstanding lawsuit with one of our former employees. If you would like to read more about it, I have attached the brief given to me by our attorney, Erin Russo. Although we currently have a liability on the lawsuit in the amount of $10,000, Judge Hennen has awarded a $20,000 judgment, so we should recognize an additional $10,000 liability