3.	INVENTORIES

The Company’s inventories at March 31, 2016 and December 31, 2015 consisted of the following:

	March 31, 2016			December 31, 2015
Raw materials	$	3,853,721		$	3,749,702
Finished goods		5,495,717			4,445,130
Inventories, gross		9,349,438			8,194,832

Inventory reserves		(283,602	)		(279,882	)

Inventories, net	$	9,065,836		$	7,914,950

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 $469,000 and $543,000 at March 31, 2016 and December 31, 2015, respectively, and are included in inventories, net on the condensed consolidated balance sheets.