Organization and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2014

Composition of Inventory

Inventories were comprised of the following at:

	June 30, 2014			December 31, 2013
Finished goods	$	1,446,900		$	1,636,500
Raw materials		1,269,700			1,621,000
Inventory reserve for obsolescence		(54,900	)		(46,300	)
	$	2,661,700		$	3,211,200

Weighted Average Fair Market Value of the Options Granted Estimated on the Date of Grant Assumptions

The weighted average fair market value of the options granted in the first six months of 2014 and 2013 was estimated on the date of grant, using a Black-Scholes option pricing model with the following assumptions:

	June 30, 2014	June 30, 2013
Expected life of options (using the “simplified” method)	4.5 years	4.5 years
Average risk-free interest rate	1.65%	0.8% - 1.0%
Average expected volatility of stock	122%	139% - 141%
Expected dividend rate	None	None
Fair value of options granted	$36,917	$42,356