Quarterly report pursuant to Section 13 or 15(d)

NOTE 2: INVENTORIES

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NOTE 2: INVENTORIES
3 Months Ended
Mar. 31, 2012
Inventory Disclosure [Text Block]
NOTE 2:                      INVENTORIES

Inventories are stated at the lower of cost or market value. Cost is determined using the average cost method or the FIFO method. The Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume. Based on these evaluations, provisions are made in each period to write down inventory to its net realizable value. Inventory write-offs are provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories, and for market prices lower than cost. Inventories in continuing business segments increased, from December 31, 2011, $176,785 in the Training and Simulation Division and $167,934 in the Battery Division for the product required to fulfill the current backlog. Inventories are composed of the following:

   
March 31, 2012
   
December 31, 2011
 
   
(Unaudited)
       
Raw and packaging materials
  $ 7,991,090     $ 7,688,821  
Work in progress
    850,930       1,025,030  
Finished products
    1,005,870       789,320  
Total:
  $ 9,847,890     $ 9,503,171