Inventories (finished goods, work in process and raw materials) are stated at the lower of cost, determined on a first-in,
first-out basis, or market. Cost is determined based solely on those charges incurred in the acquisition and production of the related
inventory (i.e. material, labor and manufacturing overhead costs). The Company estimates an inventory reserve for excess quantities
and obsolete items based on specific identification and historical write-offs, taking into account future demand and market
conditions. To the extent actual demand or market conditions in the future differ from original estimates, adjustments to recorded
inventory reserves may be required