(2) Inventories

12 Months Ended

Jun. 30, 2016

Notes

(2) Inventories

(2)  Inventories

Inventories consist of the following as of June 30:

		2016		2015
Raw materials	$	2,059,048	$	2,086,411
Finished goods		3,353,964		3,693,921
Inventory reserve		(415,758)		(358,545)
	$	4,997,254	$	5,421,787

Included in cost of goods sold for the years ended June 30, 2016 and 2015, is a write off of slow moving and obsolete inventory totaling $270,000 and $952,212, respectively. The $270,000 non-cash charge during fiscal year 2016 is based on non-performing inventory related to our Amerinet GPO contract and defective product rejected for quality purposes. The $952,212 non-cash charge reflects a write off of inventory related to strategic decisions made during the fourth quarter of fiscal 2015 resulting in some product lines being discontinued, re-evaluated or de-emphasized.  These decisions created additional obsolescence that upon analysis warranted the inventory write off.