4. INVENTORIES

9 Months Ended

12 Months Ended

Sep. 30, 2016

Dec. 31, 2015

Notes to Financial Statements

INVENTORIES

Inventories consist of :	September 30, 2016		December 31, 2015
Materials	$	1,166,501	$	477,929
Work in process		162,539		––
Finished goods		2,900,030		2,306,681
Total	$	4,229,070	$	2,784,610

Finished goods includes consigned inventory held by our customers of $402,963 at September 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 nine months of 2016 and 2015.

Inventories, net of reserves, consist of the following at December 31:

	2015		2014
Materials	$	477,929	$	300,739
Finished goods		2,306,681		1,423,768
Total	$	2,784,610	$	1,724,507

Finished goods includes consigned inventory held by our customers of $119,100 and $85,600 at December 31, 2015 and 2014, respectively.  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 $18,078 and $81,843 for the years ending December 31, 2015 and 2014, respectively.