3.	INVENTORIES

The composition of the Company’s inventories at September 30, 2015 and December 31, 2014 were as follows:

	September 30, 2015			December 31, 2014
Raw materials	$	3,888,744		$	3,365,093
Finished goods		5,799,544			5,021,536
Inventories, gross		9,688,288			8,386,629

Inventory reserves		(311,046	)		(277,296	)

Inventories, net	$	9,377,242		$	8,109,333

The inventory reserves shown in the table above reflect slow moving and obsolete inventory.

The Company manages an inventory program for one of its customers to improve the promotion of the Company's products. The Company manages the inventory levels at the customer’s warehouses and recognizes revenue as the products are sold by the customer. The inventories managed at the customer’s warehouses amounted to approximately $651,000 and $493,000 at September 30, 2015 and December 31, 2014, respectively, and are included in inventories, net on the condensed consolidated balance sheets.