3. Inventories

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Inventories

Inventories consist of :	September 30, 2017		December 31, 2016
Materials	$	1,287,621	$	888,830
Work in process		209,694		27,708
Finished goods		3,809,347		4,010,074
Total	$	5,306,662	$	4,926,612

Finished goods includes consigned inventory held by our customers of $835,800 at September 30, 2017 and $442,300 at December 31, 2016. 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 $60,096 for the three months ended September 30, 2017 and $7,838 for the three months ended September 30, 2016. The provision for inventory reserves was $186,440 for the nine months ended September 30, 2017 and $10,450 for the nine months ended September 30, 2016.