Quarterly report pursuant to Section 13 or 15(d)

Inventories

v3.19.1
Inventories
3 Months Ended
Mar. 31, 2019
Inventory Disclosure [Abstract]  
INVENTORIES
4. INVENTORIES

 

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 March 31, 2019, the increase in inventory is primarily related to WASP system production for the $3.8 million award previously announced and WASP Lite systems which could be delivered rapidly. Inventory consists of the following at March 31, 2019 and December 31, 2018: 

 

    March 31,
2019
    December 31,
2018
 
Raw Materials   $ 305,883     $ 136,555  
Work in progress     303,106       180,041  
Finished Goods     527,949       523,698  
Less valuation allowance     (532,368 )     (532,369 )
Total   $ 604,570     $ 307,925