Note 3. Inventory

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

	March 31,			December 31,
	2018			2017
Raw materials	$	918,451		$	984,328
Work in process		376			376
Finished goods		187,133			257,959
Total gross inventory		1,105,960			1,242,663
Less inventory allowance		(63,943	)		(62,142	)
	$	1,042,017		$	1,180,521

The reserve for shrinkage and excess inventory was $63,943 and $62,142 as of March 31, 2018 and December 31, 2017, respectively. For the three months ended March 31, 2018 and 2017, the Company recorded net increases in the inventory reserve of $1,801 and $3,823, respectively, to adjust for estimated shrinkage and obsolescence. For the three months ended March 31, 2018 and 2017, increase in inventory reserve of $11,280 and $192,427, respectively, have been included in the cost of revenue in the accompanying interim unaudited condensed statements of operations.