Quarterly report pursuant to Section 13 or 15(d)

Inventory

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Inventory
3 Months Ended
Mar. 31, 2016
Inventory [Abstract]  
INVENTORY
3. INVENTORY

Inventories are stated at the lower of cost or market, using the first-in first-out method. Cost includes materials, labor and manufacturing overhead related to the purchase and production of inventories. The Company regularly reviews inventory quantities on hand, future purchase commitments with its supplies, and the estimated utility of its inventory. If the review indicates a reduction in utility below carrying value, inventory is reduced to a new cost basis through a charge to cost of goods sold. Allowance for slow moving items decreased $15,383 due to sale of aerostat launcher. Inventory consists of the following at March 31, 2016 and December 31, 2015:

    March 31, 2016     December 31, 2015  
Raw materials inventory   $ 25,021     $ 26,358  
Work in process inventory     11,919       3,817  
Finished goods inventory     112,783       107,209  
Less valuation allowance     (3,206 )     (18,589 )
    $ 146,517     $ 118,795