Inventory

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 3. Inventory

Inventories, consisting of materials, labor, and manufacturing overhead, are stated at the lower of cost (first-in, first-out) or market and consist of the following at December 31:

	2012			2011
Raw materials	$	3,988,000		$	4,431,000
Work-in-process		2,000			144,000
Finished goods		587,000			644,000
Reserve for obsolescence		(2,374,000	)		(1,183,000	)
	$	2,203,000		$	4,036,000

Inventory reserve charged to operations amounted to $1,436,000 and $845,000 during 2012 and 2011, respectively. Inventory valuation adjustments and other inventory write-offs in 2012 and 2011 amounted to $245,000 and $291,000, respectively.