Inventory

6 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Inventory

Inventory is valued at the lower of the cost or market.  Cost is determined using the first-in, first-out (“FIFO“) method.  Market is determined based on the estimated net realizable value, which generally is the item’s selling price.  Inventory is periodically reviewed in order to identify obsolete, damaged or impaired items.

Inventory consists of finished goods that are sold to customers and used for minor repairs of ReliAlert™, Shadow, and other tracking devices. Completed ReliAlert™, and other tracking devices are reflected in Monitoring Equipment.  As of March 31, 2016 and September 30, 2015, respectively, inventory consisted of the following: 

	March 31,			September 30,
	2016			2015
Finished goods inventory	$	843,072		$	967,414
Reserve for damaged or obsolete inventory		(98,150	)		(225,900	)
Total inventory, net of reserves	$	744,922		$	741,514