Quarterly report pursuant to Section 13 or 15(d)

Inventory

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Inventory
9 Months Ended
Sep. 30, 2016
Inventory [Abstract]  
INVENTORY
3.   INVENTORY

 

Inventories are stated at the lower of cost or market using the first-in, first-out method. Cost includes materials, labor and manufacturing overhead related to the purchase and production of inventories. The Company regularly reviews inventory quantities on hand, future purchase commitments with its suppliers, and the estimated utility of its inventory. If the review indicates a reduction in utility below carrying value, inventory is reduced to a new cost basis through a charge to cost of goods sold. Allowance for slow moving items decreased $15,383 due to the sale of an aerostat launcher. Inventory consists of the following at September 30, 2016 and December 31, 2015: 

  

      September 30,
2016
    December 31,
2015
 
  Raw materials inventory   $ 41,686     $ 26,358  
  Work in process inventory     67,116       3,817  
  Finished goods inventory     248,768       107,209  
  Less valuation allowance     (3,206 )     (18,589 )
  Total   $ 354,364     $ 118,795