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INVENTORIES

12 Months Ended

Dec. 31, 2013

INVENTORIES [Abstract]

NOTE 4 – INVENTORIES

Our inventories consist of the following at:

		December 31,
		2013				2012
Raw materials		$	37,953			$	66,719

Work-in-process							165

Provision for loss on project			-				-

Total inventory		$	37,953			$	66,884

Inventories include material, direct labor and related manufacturing administrative overhead and are stated at the lower-of-cost (determined on a weighted average basis) or market for raw materials and work-in-process inventory. When actual contract cost and the estimate to complete exceed the estimated contract revenues, a loss provision is recorded. Due to the nature of our inventory, we analyze inventory on an item-by-item basis compared to future usage and sales for obsolescence quarterly. As of December 31, 2013, management did not believe an obsolescence reserve was necessary based on this analysis. As of December 31, 2012, management created an obsolescence reserve of approximately $15,000 based on this analysis.

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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