4. Inventories

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

NOTE 4 - Inventories

Inventories consist of the following at June 30, 2012 and December 31, 2011:

	June 30, 2012		December 31, 2011
Raw materials	$	354,819	$	173,510
Work in progress		319,753		11,768
Finished goods		242,238		320,678
Total	$	916,810	$	505,956

In March 2012, the Company recorded a nonreciprocal, non-monetary receipt of inventory in the amount of $87,215. This amount was also recorded as Other Income in the Statement of Operations during the six month period ended June 30, 2012. The transaction was accounted for at fair value on the date the inventory was received.