Quarterly report pursuant to Section 13 or 15(d)

Inventory

Inventory

3 Months Ended

Mar. 31, 2016

All components of inventory are valued at the lower of cost (first-in, first-out) or market. We adjust inventory to market value when the net realizable value is lower than the carrying cost of the inventory. Market value is determined based on estimated sales activity and margins. We estimate a reserve for obsolete inventory based on management’s judgment of probable future commercial use, which is based on an analysis of current inventory levels, estimated future sales and production rates, and estimated shelf lives.

The components of inventory as of March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016			December 31, 2015
	(unaudited)
Materials	$	30,000		$	330,000
Work-in-process		108,518			392,457
Finished goods		938,324			275,168
Reserves		(177,906	)		(344,719	)
Total	$	898,936		$	652,906

During the three-month period ended March 31, 2015, we wrote off $120,000 of materials related to production issues. During the three-month period ended March 31, 2015, the Company used $37,000 of Lymphoseek inventory for clinical study and product development purposes.