INVENTORIES

Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first in, first out (“FIFO”) method. The Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume and based on these evaluations, provisions are made in each period to write down inventory to its net realizable value. For the three months ended March 31, 2019 and 2018 the Company wrote off approximately $41,600 and $154,000, respectively, of obsolete inventory, which has been included in the cost of revenues.

Inventories by component are as follows:



	March 31, 2019		December 31, 2018
Raw and packaging materials	$	7,977,195	$	7,912,883
Work in progress	1,054,467		1,626,960
Finished products	420,802		372,905
Total:	$	9,452,464	$	9,912,748