Inventories

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Inventory

NOTE 4 – INVENTORIES

Inventories consisted of the following for the years ended December 31:

	2016		2015
Raw materials	$	44,455	$	91,555
Work in process		1,425,056		943,234
Finished goods		6,729		14,317
	$	1,476,240	$	1,049,106

Included in raw material inventory are the various pellet holders and housings involved in target fabrication, raw cobalt, strontium and other raw elements, completed flood sources, irradiated cobalt and nuclear medicine-related materials and products. Raw material inventory is regularly reviewed for obsolescence, and as part of the Company’s year-end procedures, it was determined that some older material used in product fabrication was no longer of value to the Company. At that time, the Company wrote-off approximately $47,000 of raw material inventory.

Work in process includes cobalt-60 targets that are located in the ATR located outside of Idaho Falls, Idaho. These targets are owned by the Company and contain cobalt-60 material at various stages of irradiation. The carrying value of the targets is based on accumulated irradiation and handling costs which have been allocated to each target based on the length of time the targets have been held and processed at the reactor. In 2015, it was determined that some of the older, lower activity level targets no longer held commercial value. The carrying value of these targets was expensed at that time and $102,857 was charged to cost of goods sold and the value of the cobalt target inventory was decreased accordingly. During the Company’s year-end procedures at December 31, 2016, an analysis of this inventory was performed and it was determined that future market value of the target inventory exceeded its carrying value; therefore, no inventory write-down was made. At December 31, 2016, the remaining cobalt target inventory had a carrying value of $442,759, and at December 31, 2015, the inventory was valued at $458,852.

Work in process also includes costs to irradiate cobalt-60 material under a contract with the DOE. This material has been placed in the reactor exclusively for purchase by the Company, and at December 31, 2016, the amount of accumulated irradiation charges reported as inventory was $766,080. The Company has contracted with several customers for the purchase of this cobalt-60 material and has collected advance payments for project management, up-front handling and irradiation charges. These payments have been recorded as unearned revenue. The revenue and the costs associated with irradiation will be recognized as the targets are completed and shipped to the customer, which is expected to be in 2018.