Inventory

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Inventory

Note 3. Inventory

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

	March 31,		December 31,
	2019		2018
Raw materials	$	687,340	$	853,228
Work in process		209,200		168,937
Finished goods		282,501		284,444
Inventory, net	$	1,179,041	$	1,306,609

The reserve for shrinkage and excess raw material inventory was $39,403 as of both March 31, 2019 and December 31, 2018. For the three months ended March 31, 2019, the Company recorded a net change in the inventory reserve of $0 compared to a net increase of $1,801 for the three months ended March 31, 2018, to adjust for estimated shrinkage and obsolescence. For the three months ended March 31, 2019, the Company recorded adjustments to the provision for excess inventory of $24,296 compared to $11,280 for the three months ended March 31, 2018. Adjustments in these periods to the allowance for estimated shrinkage, obsolescence and excess inventory have been included in cost of product and product-related services revenue in the accompanying condensed consolidated statements of operations.

HTG EdgeSeq instruments at customer locations under evaluation agreements are included in finished goods inventory. Finished goods inventory under evaluation as of March 31, 2019 was $57,788 compared to $143,271 as of December 31, 2018.