Quarterly report pursuant to Section 13 or 15(d)

Inventory

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Inventory
9 Months Ended
Sep. 30, 2018
Inventory [Abstract]  
INVENTORY
4. INVENTORY

 

Inventories are stated at the net realizable value, 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. At September 30, 2018, $1,050,740 of the $1,238,331 Work in Process Inventory was related to the WASP multi-mission capable tactical aerostat valued in excess of $1.7 million dollars which was delivered to the Department of Defense on October 9, 2018. Inventory consists of the following at September 30, 2018 and December 31, 2017: 

 

      September 30, 
2018
    December 31,
2017
 
  Raw Materials   $ 115,926     $ 114,119  
  Work in Progress     1,238,331       482,770  
  Finished Goods     416,978       398,912  
  In Transit     -       5,468  
  Less valuation allowance     (9,572 )     (9,572 )
  Total   $ 1,761,663     $ 991,697