3. Inventory

Inventories are stated at the lower of cost or market. Cost is determined using the weighted average cost of raw materials, which approximates the first-in, first-out (FIFO) method, and includes allocations of manufacturing labor and overhead. Provisions are made to reduce potentially excess, obsolete or slow-moving inventories to their net realizable value. Inventories as of September 30, 2011 and December 31, 2010, consisted of the following:


	September 30, 2011			December 31, 2010

Raw materials and work-in-process	$	12,514,911		$	11,817,579
Finished goods		3,873,847			6,348,490
Reserve for excess and obsolete inventory		(919,630	)		(350,664	)


	$	15,469,128		$	17,815,405