Note 3. Inventory

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

	June 30,			December 31,
	2018			2017
Raw materials	$	882,396		$	984,328
Work in process		81,237			66,314
Finished goods		101,245			192,021
Total gross inventory		1,064,878			1,242,663
Less inventory allowance		(62,329	)		(62,142	)
	$	1,002,549		$	1,180,521

The reserve for shrinkage and excess inventory was $62,329 and $62,142 as of June 30, 2018 and December 31, 2017, respectively. For the three and six months ended June 30, 2018, the Company recorded adjustments in the inventory reserve of $(1,614) and $187, respectively, compared to net decreases of $66,250 and $62,427, respectively, for the three and six months ended June 30, 2017, to adjust for estimated shrinkage and obsolescence. For the three and six months ended June 30, 2018, the Company recorded adjustments to provision for excess inventory of $12,253 and $23,533, respectively. 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. Adjustments in these periods to the allowance for estimated shrinkage, obsolescence and excess inventory have been included in cost of revenue in the accompanying interim unaudited condensed statements of operations.