Inventory

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

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, 2015			December 31, 2014
Raw materials	$	3,098,000		$	3,098,000
Work-in-process		222,000			222,000
Finished goods		449,000			449,000
Reserve for obsolescence		(3,657,0000	)		(3,401,000	)
	$	112,000		$	368,000

The Company did not have production operations in the nine months ended September 30, 2015. Therefore, there was no change in the balance of inventory between September 30, 2015 and December 31, 2014.  Inventory valuation adjustments amounted to $110,000 and $256,000 for the three and nine months ended September 30, 2015 and $59,000 for the three and nine months ended September 20, 2014.