NOTE 5 – INVENTORIES

At June 30, 2017 and December 31, 2016, inventories consisted of the following:

	June 30, 2017			December 31, 2016
Raw materials	$	1,250,199		$	1,003,359
Work-in-process		1,475,058			639,345
Finished goods		788,055			772,652
		3,513,312			2,415,356
Less: reserve for obsolete inventories		(21,688	)		(21,177	)
	$	3,491,624		$	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.