Inventory

12 Months Ended

Dec. 31, 2013

Notes to Financial Statements

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:

	2013			2012
Raw materials	$	3,098,000		$	3,988,000
Work-in-process		222,000			2,000
Finished goods		449,000			587,000
Reserve for obsolescence		(3,342,000	)		(2,374,000	)
	$	427,000		$	2,203,000

Inventory reserve charged to operations amounted to $1,660,000 and $1,436,000 during 2013 and 2012, respectively. Inventory valuation adjustments and other inventory write-offs in 2013 and 2012 amounted to $692,000 and $245,000, respectively.