5.	Inventories

Inventories consist principally of packaged meal replacements held in the Company’s warehouses. Inventory is stated at the lower of cost or market, utilizing the first-in, first-out method. The cost of finished goods includes the cost of raw materials, packaging supplies, direct and indirect labor and other indirect manufacturing costs. On a quarterly basis, management reviews inventory for unsalable or obsolete inventory.

Inventories consisted of the following as of:

	September 30, 2015		December 31, 2014
Raw Materials	$	3,481,000	$	4,410,000
Packaging		882,000		920,000
Non-food Finished Goods		773,000		1,108,000
Finished Goods		6,744,000		9,689,000
Reserve for Obsolete Inventory		(110,000)		(392,000)
	$	11,770,000	$	15,735,000