INVENTORY

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

INVENTORY

4. INVENTORY

Inventories currently consist of MelaFind systems; work in process components and other finished products and accessories that are stated at the lower of cost or fair value. Inventory accessories are purchased items to be sold for use in the operation of the MelaFind systems. The Company maintains a reserve for specific inventory items that are no longer being used in the devices. This reserve consists of approximately $280,344 in phantom fixture finished goods, $264,550 in work in process phantom fixture assemblies, and $325,000 in MelaFind system accessories.

Beginning in the second quarter of 2014, the Company deferred repairs of certain of its MelaFind system units that it determined were unlikely to be sold during the next several periods. The Company periodically estimates the cost to restore its system units to sellable condition and currently maintains a repair reserve of $538,559 for this purpose.

Inventory consists of the following:

	March 31,			December 31,
	2015			2014
MelaFind Systems	$	3,197,421		$	3,266,586
Components/raw materials		2,552,612			2,552,612
Accessories		496,346			514,058
Hand-held Imager assemblies		350,000			350,000
		6,596,379			6,683,256
Reserve for obsolete inventory		(869,894	)		(869,894	)
Reserve for inventory repairs		(538,559	)		(538,559	)
	$	5,187,926		$	5,274,803