NOTE 6 – INVENTORIES

Inventories consist of the following as of:

	September 30, 2011 (Unaudited)			December 31, 2010
Raw material	$	172,985		$	61,746
Work in process		1,387,676			926,857
Finished goods		492,616			210,496
Reserve		(23,992	)		-
Total	$	2,029,285		$	1,199,099

Costs of bringing blueberry seedlings crops to harvest are inventoried when incurred. Such costs are usually expensed when the crops are sold. For the three and nine months ended September 30, 2011, costs of goods of $304,399 and $511,601 related to deferred sales (see Note 5) are included in costs of goods sold as the related inventory, once shipped, is not returnable.