Annual report pursuant to section 13 and 15(d)

INVENTORIES

INVENTORIES

12 Months Ended

Dec. 31, 2011

NOTE 5 – INVENTORIES

Inventories include the following at December 31:

	2011		2010

Raw material	$	3,400,210	$	4,023,324
Finished products		6,056,155		1,893,959

Total inventory	$	9,456,365	$	5,917,283

Inventory serving as collateral for the Company's line of credit with a domestic bank was $4.77 million and $4.08 million at December 31, 2011, and 2010, respectively (see Note 10).

At December 31, 2011, and 2010, current cost exceeded the LIFO value by approximately $2,277,000 and $2,274,000, respectively.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

+ References + Details