Quarterly report pursuant to sections 13 or 15(d)

Inventories

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Inventories
6 Months Ended
Jun. 30, 2012
Inventories [Abstract]  
Inventories
3. Inventories:

Inventories consist of the following:

 

                 
    (Unaudited)
June 30

2012
    December 31,
2011
 

Raw materials

  $ 1,512,247     $ 1,708,642  

Finished goods

    1,401,690       2,163,820  
   

 

 

   

 

 

 
      2,913,937       3,872,462  

Less: inventory reserve

    (1,456,585     (895,415
   

 

 

   

 

 

 

Net inventories

  $ 1,457,352     $ 2,977,047  
   

 

 

   

 

 

 

As a result of deteriorating market conditions and aggressive pricing by competitors, the Company experienced a decrease in market price for certain products in its LED replacement lamps segment. For the six months ended June 30, 2012, the Company recorded a write down of inventory of $387,196 due to this decrease in market price.