NOTE 5 – INVENTORIES

At June 30, 2018 and December 31, 2017, inventories consisted of the following:

	June 30, 2018			December 31, 2017
Raw materials	$	2,150,671		$	998,751
Work-in-process		2,774,628			2,629,570
Finished goods		2,039,186			1,239,168
		6,964,485			4,867,489
Less: reserve for obsolete inventories		(310,193	)		(313,930	)
	$	6,654,292		$	4,553,559

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. For the six months ended June 30, 2018 and 2017, the Company did not increase its reserve for obsolete inventory.