NOTE E – INVENTORY

Our inventory consisted of the following:


	March 31, 2015			December 31, 2014
Recovered cargo	$	5,553,773		$	5,681,264
Packaging		64,681			70,560
Merchandise		402,850			405,467
Merchandise reserve		(371,332	)		(371,332	)

Total inventory	$	5,649,972		$	5,785,959

Of these amounts, $5,080,643 and $5,110,967 are classified as non-current as of March 31, 2015 and December 31, 2014, respectively. Based on the fair market value of silver at March 31, 2015 and our inventory valuation policy, we recorded a charge to “Cost of goods sold” for the mark down of our silver Gairsoppa bars of $151,922 to fairly represent the net realizable value.

On shipwreck recovery projects where we do not own the recovered cargo, such as the Gairsoppa and the SS Central America projects, we do not carry any of the recovered but non-monetized cargo as inventory unless we receive cargo as payment for services, as part of our share of proceeds, or if we purchase some of the cargo for re-sale.