3. Inventories

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Inventories

Inventories consist of:

	June 30, 2016		December 31, 2015
Materials	$	666,011	$	477,929
Work in process		204,162		—
Finished goods		2,920,851		2,306,681
Total	$	3,791,024	$	2,784,610

Finished goods includes consigned inventory held by our customers of $233,900 at June 30, 2016 and $119,100 at December 31, 2015. The Company reviews inventory for obsolete and slow moving products each quarter and makes provisions based on its estimate of the probability that the material will not be consumed or that it will be sold below cost. The provision for inventory reserves was negligible in both the first six months of 2016 and the fourth quarter of 2015.