NOTE 5 – INVENTORIES

At December 31, 2016 and 2015, inventories consisted of the following:

	December 31, 2016			December 31, 2015
Raw materials	$	1,003,359		$	643,976
Work-in-process		639,345			549,824
Finished goods		772,652			495,906
		2,415,356			1,689,706
Less: reserve for obsolete inventories		(21,177	)		(22,658	)
	$	2,394,179		$	1,667,048

The Company establishes a reserve to mark down its inventories for estimated unmarketable inventories equal to the difference between the cost of inventories and the estimated net realizable value based on assumptions about the usability of the inventories, future demand and market conditions.