5. INVENTORIES, NET

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

INVENTORIES, NET

Inventory is recorded at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventories consisted of the following:

	December 31,		December 31,
	2020		2019
Finished goods	$	1,248,893	$	653,323
Work in process		64,451		413
Raw materials		1,342,046		1,590,805
Inventories, net	$	2,655,390	$	2,244,541

During the years ended December 31, 2020 and 2019 the Company wrote off $68,108 and $193,506, respectively, of raw material and scrap parts primarily due to startup production, model changes and improvements.