4. Inventories

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

NOTE 4 - Inventories

Inventories consist of the following at March 31, 2013 and December 31, 2012:

	March 31, 2013		December 31, 2012
Raw materials	$	325,570	$	398,510
Work in progress		245,117		116,319
Finished goods		105,751		141,568
Total	$	676,438	$	656,397

During the period ended March 31, 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 three month period ended March 31, 2012. The transaction was accounted for at fair value on the date the inventory was received.