First off, the reason product expires is because i

First off, the reason product expires is because it can't be sold. Second, their 10Q for the quarter ending on Dec. 31, 2016 had a line item on the Consolidated Statements of Operations which accounted for "Inventory Obsolescence". I suggest they had permission from Ms. Li to store it at the resort property. Better to have it separate from current inventory rather than risk having some of it inadvertently shipped.