Note 3. Inventory

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

	September 30,			December 31,
	2018			2017
Raw materials	$	843,973		$	984,328
Work in process		152,458			66,314
Finished goods		172,064			192,021
Total gross inventory		1,168,495			1,242,663
Less inventory allowance		(39,403	)		(62,142	)
	$	1,129,092		$	1,180,521

The reserve for shrinkage and excess inventory was $39,403 and $62,142 as of September 30, 2018 and December 31, 2017, respectively. For the three and nine months ended September 30, 2018, the Company recorded net decreases in the inventory reserve of $22,926 and $22,739, respectively, compared to net decreases of $21,405 and $83,832, respectively, for the three and nine months ended September 30, 2017, to adjust for estimated shrinkage and obsolescence. For the three and nine months ended September 30, 2018, the Company recorded adjustments to provision for excess inventory of $40,307 and $63,840, respectively. For the three and nine months ended September 30, 2017, the Company recorded adjustments to provision for excess inventory of $58,059 and $302,085, 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.