Inventory

9 Months Ended

Sep. 30, 2011

Inventory

Inventory

3. Inventory

Inventories are stated at the lower of cost or market with cost determined under the first-in, first-out, or FIFO, method. The Company’s inventory at December 31, 2010 and September 30, 2011 was $2,935,000 and consisted of finished goods. These finished goods relate to sales for which the revenue has been deferred and will be recognized as cost of sales when revenue for such sales is recognized.