Prepared for Stearns Bank · Confidential
Inventory reconciliation — June 30, 2026
| Inventory per general ledger (account 12000), June 30, 2026 | $15,224,312.38 |
| illy caffe North America, Inc., bill 26108505, June 25, 2026 | (364,138.74) |
| SureFire, LLC, bill 2759159, June 26, 2026 | (334,047.70) |
| SureFire, LLC, bill 2759158, June 26, 2026 | (7,945.00) |
| Bills entered, product not yet received | (706,131.44) |
| Adjusted general ledger inventory | $14,518,180.94 |
| Validated inventory on hand, pull dated June 28, 2026 | (14,277,571.89) |
| Remaining timing difference | $240,609.05 |
| As a percentage of general ledger inventory | 1.58% |
Notes
Vendor bills post to inventory when the invoice hits accounts payable; product arrives later. At any cutoff the ledger includes bills for product not yet received. Three bills qualified this period.
The remaining $240,609.05 is inventory not yet accounted for by Amazon at the count date — in transit, in Amazon processing, or pending Amazon reimbursement. This category is disclosed in Note 2 of our reviewed financial statements (RubinBrown LLP, years ended December 31, 2024 and 2025) and reverses as Amazon catches up.
The reconciliation runs on the gross 12000 balance; the obsolete inventory allowance (−$60,532.38) is a valuation reserve and corresponds to the reserved and aged inventory identified separately in the count. Freight lines are excluded (one line, $17.80).
Our financial statements are reviewed annually by RubinBrown LLP; the 2024 and 2025 reviews are on file. Inventory held at Amazon is a moving target — Amazon's accounting of received inventory always trails the ledger — so tying the ledger back to a validated count has always produced a timing difference of this kind. Both reviews carry it as the Note 2 category above, and both lender inventory audits on file reconcile the same way. This memo applies the same method at June 30, 2026.
The full reconciliation package — this memo with the GL detail, vendor bills, and validated count summaries in one PDF — and the underlying workbooks are in Documents. Reviewed financial statements available on request.