Note 3. Inventory

Inventory, net of allowance, consisted of the following as of the date indicated:

	June 30,			December 31,
	2017			2016
Raw materials	$	1,106,363		$	1,222,437
Work in process		106			1,762
Finished goods		414,918			557,161
Total gross inventory		1,521,387			1,781,360
Less inventory allowance		(207,880	)		(270,307	)
	$	1,313,507		$	1,511,053

For the three and six months ended June 30, 2017, the Company recorded net decreases in the inventory reserve of $66,250 and $62,427, respectively, compared with net increases of $73,305 and $91,542, respectively, for the three and six months ended June 30, 2016, to adjust for estimated shrinkage and obsolescence. For the three and six months ended June 30, 2017, the Company recorded adjustments to provision for excess inventory of $51,599 and $244,026, respectively. For the three and six months ended June 30, 2016, the Company recorded adjustments to provision for excess inventory of $119,221 and $149,763, respectively. Adjustments in these periods to the allowance for estimated shrinkage, obsolescence and excess inventory were recognized within cost of revenue in the condensed statement of operations.