INVENTORIES

6 Months Ended

Jun. 30, 2011

Inventory Disclosure [Text Block]

NOTE 6 – INVENTORIES

Our inventories primarily consist of ferrous and non-ferrous, including stainless steel, scrap metals and are valued at the lower of average purchased cost or market using the specific identification method. Quantities of inventories are determined based on our inventory systems and are subject to periodic physical verification using estimation techniques including observation, weighing and other industry methods. We recognize inventory impairment when the market value, based upon current market pricing, falls below recorded value or when the estimated volume is less than the recorded volume of the inventory. We record the loss in cost of goods sold in the period during which we identified the loss.

Some commodities are in saleable condition at acquisition. We purchase these commodities in small amounts until we have a truckload of material available for shipment. Some commodities are not in saleable condition at acquisition. These commodities must be shredded, torched, sheared or baled. We do not have work-in-process inventory that needs to be manufactured to become finished goods. We include processing costs in inventory for all commodities.

Inventory also includes all types of industrial waste handling equipment and machinery held for resale such as compactors, balers, and containers. Replacement parts included in inventory are depreciated over a one-year life. Other inventory includes fuel, cardboard and baling wire. Inventories as of June 30, 2011 and December 31, 2010 consist of the following:

	June 30, 2011								December 31, 2010
	Raw Materials		Finished Goods			Processing Costs	Total (unaudited)		Raw Materials		Finished Goods		Processing Costs		Total
	(in thousands)
Stainless steel, ferrous and non-ferrous materials	$	30,706	$	1,130	$	855	$	32,691	$	30,546	$	1,203	$	1,115	$	32,864
Waste equipment machinery		—		68		—		68		—		75		—		75
Other		—		78		—		78		—		59		—		59
Total inventories for sale		30,706		1,276		855		32,837		30,546		1,337		1,115		32,998
Replacement parts		1,329		—		—		1,329		1,313		—		—		1,313
Total inventories	$	32,035	$	1,276	$	855	$	34,166	$	31,859	$	1,337	$	1,115	$	34,311