Inventory, Net

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 31, 2010

10. Inventory, net

Inventory is stated at the lower of cost or market using the first-in first-out method. The Company's inventory as of June 30, 2011 and December 31, 2010 was approximately as follows:

	Unaudited			Audited
	June 30, 2011			December 31, 2010
Raw Materials	$	-		$	264,000
Finished Goods		352,000			480,000
Total Gross Inventory	$	352,000		$	744,000
Less: Inventory reserve		(18,000	)		(18,000	)
Total Inventory	$	334,000		$	726,000

Note 3 — Inventory

The Company's inventory components as of December 31, 2010 and 2009 were as follows:

	December 31,
		2010			2009
Raw Materials	$	264,000		$	257,000
Finished Goods		480,000			414,000
Total Gross Inventory		744,000			671,000
Less: Inventory reserve		(18,000	)		(18,000)
Total Inventory	$	726,000		$	653,000

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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