NOTE 3 - INVENTORY

3 Months Ended

Sep. 30, 2016

NOTE 3 - INVENTORY

Inventory is stated at the lower of cost (computed on a first-in, first-out basis) or market. The inventory consists primarily of chemicals, finished goods produced in our plant and products purchased for resale.

	September 30, 2016			June 30, 2016
	(Unaudited)
Raw Materials	$	228,232		$	257,260
Finished Goods		628,957			663,666
Inventory reserve		(46,856	)		(125,981	)
Inventory – net (current and long term)	$	810,333		$	794,945

Our inventory reserve reflects items that were deemed to be defective or obsolete based on an analysis of all inventories on hand.

In fiscal years 2017 and 2016, the Company critically reviewed all slow moving inventory to determine if defective or obsolete. If not defective or obsolete we presented these items as non-current inventory, although all inventory is ready and available for sale at any moment.

For those items that are spare maintenance materials or parts kept on hand as backup components of major production lines, or “store inventories”, the Company capitalizes the amount if above our capitalization policy for property and equipment. In the past we have included these items as part of our raw materials inventory. As of September 30, 2015 these items, amounting to $10,815, have been reclassified into other current assets.