Note 2 - Inventory

9 Months Ended

Sep. 30, 2011

Note 2—Inventory

Inventories for continuing operations consist of Company-manufactured platelets. Supplies consist primarily of medical supplies used to collect and manufacture platelets and to provide therapeutic services. Inventories are stated at the lower of cost or market and are accounted for on a first-in, first-out basis. Inventories for discontinued operations as of December 31, 2010 consist of whole blood components and other blood products, as well as component blood products purchased for resale.

Inventories are comprised of the following as of:

	September 30,			December 31,
	2011			2010
Continuing Operations
Supplies	$	429,000		$	461,000
Blood products		25,000			116,000
Less: reserve		(32,000	)		-
Total	$	422,000		$	577,000

Discontinued Operations
Blood Products	$	-		$	40,000
Total	$	-		$	40,000