6. INVENTORIES

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

6. INVENTORIES

6. INVENTORIES 

Inventories as of December 31, 2013 and December 31, 2012 consisted of the following: 

		12/31/2013		12/31/2012
Finished goods	$	77,059	$	84,352
Raw materials		1,461,932		16,154
Packing materials		27,454		10,324
Other supplies		111		—
Total	$	1,566,556	$	110,830

The Company performs physical inventory count on a regular basis and instead of recording an allowance for spoilage, the spoilage will be written-off directly to the income statement when it occurs. The spoilage rate is approximately 2% of average inventory.