7. Inventories

Inventories are stated at the lower of cost or market. Cost is determined using standard costs which approximate costing determined on a first-in, first out basis. Standard costs are reviewed and adjusted periodically and at year end based on actual direct and indirect production costs. On a periodic basis, the Company reviews its inventory for estimated obsolescence or unmarketable items, primarily by reviewing future demand requirements and shelf life of the product.

Inventories are comprised of the following:

	December 31,		December 31,
	2016		2015
Raw materials	$	3,310,310	$	2,770,636
Work in Process		1,942,600		2,198,981
Finished Goods		13,889,328		13,723,090
Allowance for excess quantities		(794,227)		(822,796)
Total inventories	$	18,348,011	$	17,869,911