Quarterly report pursuant to Section 13 or 15(d)

Inventory

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Inventory
6 Months Ended
Jun. 30, 2017
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. We regularly review inventory quantities on hand, future purchase commitments with our supplies, and the estimated utility of our inventory. If the review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis through a charge to cost of goods sold. Allowance for slow moving items increased $6,366 due to a type of aerostat material which was custom ordered. Inventory consists of the following at June 30, 2017 and December 31, 2016: 

 

      June 30, 2017     December 31, 2016  
  Raw Materials   $ 102,587     $ 48,014  
  Work in Progress     271,346       254,258  
  Finished Goods     271,988       160,819  
  Less valuation allowance     (9,572 )     (3,206 )
  Total   $ 636,349     $ 459,885