Inventory

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Note 3. Inventory

Inventory, consisting of materials, labor and manufacturing overhead, is stated at the lower of cost (first-in, first-out) or market and consisted of the following at:

	September 30, 2012			December 31, 2011
Raw Materials	$	4,237,000		$	4,431,000
Work In Progress		3,000			144,000
Finished Goods		587,000			644,000
Reserve for Obsolescence		(1,967,000	)		(1,183,000	)
Total	$	2,860,000		$	4,036,000

        Inventory write-offs were $161,000 and $203,000 for the nine months ended September 30, 2012 and 2011, respectively.