Inventories

12 Months Ended

Dec. 31, 2013

NOTE 3 - INVENTORIES

At December 31, 2013 and 2012, inventories consisted of the following:

	December 31, 2013			December 31, 2012
Raw materials	$	1,627,784		$	1,685,493
Work in process		1,778,650			2,602,990
Finished goods		1,509,606			1,745,052
		4,916,040			6,033,535
Less: reserve for obsolete inventory		(182,482	)		(135,980	)
	$	4,733,558		$	5,897,555

For the year ended December 31, 2013, the Company increased reserve for obsolete inventory in the amount of $41,381. For the year ended December 31, 2012, the Company decreased reserve for obsolete inventory in the amount of $37,882 as the part of reserved inventory in prior years had been sold out in 2012.

- 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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