NOTE 5 – INVENTORIES

At March 31, 2017 and December 31, 2016, inventories consisted of the following:

	March 31, 2017			December 31, 2016
Raw materials	$	1,067,044		$	1,003,359
Work-in-process		1,333,873			639,345
Finished goods		415,423			772,652
		2,816,340			2,415,356
Less: reserve for obsolete inventories		(21,337	)		(21,177	)
	$	2,795,003		$	2,394,179

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.