4. Inventories

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

NOTE 4 - Inventories

Inventories consist of the following at September 30, 2012 and December 31, 2011:

	September 30,  2012		December 31, 2011
Raw materials	$	461,582	$	173,510
Work in progress		207,494		11,768
Finished goods		180,135		320,678
Total	$	849,211	$	505,956

In March 2012, the Company recorded a nonreciprocal, non-monetary receipt of inventory in the amount of $87,215. This amount was also recorded as Other Income in the Statement of Operations during the nine month period ended September 30, 2012. The transaction was accounted for at fair value on the date the inventory was received.