Inventories

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 4 – INVENTORIES

As of March 31, 2019 and December 31, 2018, inventories consisted of the following: 

	March 31, 2019			December 31, 2018
Raw materials	$	1,030,504		$	1,207,334
Work-in-process		774,260			872,376
Finished goods		5,676,673			5,547,301
		7,481,437			7,627,011
Less: inventory reserve		(4,929,768	)		(1,212,706	)
	$	2,551,669		$	6,414,305

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 three months ended March 31, 2019 and 2018, the Company increased its inventory reserve for $3,672,019 and $0, respectively.