Note 5 - Inventories

9 Months Ended

Sep. 30, 2011

Inventory Disclosure [Text Block]

NOTE 5:                      INVENTORIES

Inventories consist of:

	September 30, 2011			December 31, 2010
	(Unaudited)
Raw materials	$	1,957,704		$	2,010,820
Work-in-process		1,238,014			1,388,516
Finished goods		39,065			180,526
Totals		3,234,783			3,579,862
Less: Reserve for obsolescence		(300,000	)		(100,000	)
	$	2,934,783		$	3,479,862

During the nine months ended September 30, 2011, the Company recorded certain inventory write-downs of $660,000. The Company did not record any inventory write-downs during the nine months ended September 30, 2010.

Idle inventory includes $1,150,000 of equipment returned from a terminated contract which was valued at the lower of cost or market. (See Note 12)