Inventory

3 Months Ended

Mar. 31, 2014

Notes to Financial Statements

Inventory

Inventory, consisting of materials, labor and manufacturing overhead, is stated at the lower of cost (first-in, first-out) or market and consisted of the following at:

	March 31, 2014			December 31, 2013
Raw materials	$	3,098,000		$	3,098,000
Work-in-process		222,000			222,000
Finished goods		449,000			449,000
Reserve for obsolescence		(3,342,000	)		(3,342,000	)
	$	427,000		$	427,000

The Company did not have production operations in the three months ended March 31, 2014. Therefore, there was no change the balance of inventory between December 31, 2013 and March 31, 2014. Inventory valuation adjustments and other inventory write-offs amounted to $11,000 for the three months ended March 31, 2013.