Annual report pursuant to section 13 and 15(d)

3. INVENTORIES

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3. INVENTORIES
12 Months Ended
Dec. 31, 2012
Inventory Disclosure [Abstract]  
NOTE 3 - INVENTORIES

Inventories consist of material, labor and manufacturing overhead and are recorded at the lower of cost, using the weighted average cost method, or net realizable value.

 

The components of inventories at December 31, 2012 and 2011, net of inventory reserves, were as follows:

 

    2012     2011  
Raw materials   $ 13,125     $ 23,034  
                 
Finished goods     3,684       562  
                 

  Total

 

 

$

 

16,809

 

   

$

 

23,596

 

 

 

The Company periodically reviews quantities of inventory on hand and compares these amounts to expected usage of each particular product or product line. The Company records, as a charge to cost of sales, any amounts required to reduce the carrying value to net realizable value.