- INVENTORIES

12 Months Ended

Dec. 31, 2015

- INVENTORIES [Abstract]

- INVENTORIES

NOTE 3 - INVENTORIES

Our inventories consist of the following at:

F- 11

APPLIED ENERGETICS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

	December 31,
	2015		2014
Raw materials	$	-	$	32,900
Work-in-process
Provision for loss		-		(32,900	)
Total inventory	$	-	$	-

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, 2014, management believed a 100% obsolescence reserve was necessary based on this analysis.