4. Inventories

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

NOTE 4 - Inventories

Inventory consists of the following at September 30, 2013 and December 31, 2012:

	September 30, 2013		December 31, 2012
Raw materials	$	192,096	$	398,510
Work in progress		150,784		116,319
Finished goods		66,315		141,568
Total	$	409,195	$	656,397

During the nine months ended September 30, 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.