Inventory Action Will Increase Loss
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LAGUNA HILLS — Advantage Life Products Inc. said Tuesday that it is taking about $900,000 in reserve against potentially expired retail inventory of its top-selling product, an action that will increase its projected annual loss.
The company said it is supplying fresh stock of its CigArrest smoking cessation products to 35,000 retailers across the country. It said that until recently, it had no control over the shelf-life dating of the product. Also, some retailers have not been properly rotating their stock so that the older packages were displayed to consumers.
Previous estimates stated that the Laguna Hills company would probably report a loss of about $1 million for its fiscal year that ended April 30. With the reserve, those losses could run as high as $1.9 million, company spokesman Ken Tanner said.
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