Quarterly report pursuant to Section 13 or 15(d)

NOTE 2: INVENTORIES

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NOTE 2: INVENTORIES
9 Months Ended
Sep. 30, 2011
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 reviews the raw material inventory levels along with the current and historical purchase prices of the inventory. Based on these reviews, 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 increased, from December 31, 2010, $1.3 million in the Training and Simulation Division, $786,000 in the Battery Division and $2.8 million in the Armor Division for the product required to fulfill the increased current backlog. Inventories are composed of the following:

   
September 30, 2011
   
December 31, 2010
 
Raw and packaging materials
  $ 9,346,720     $ 7,693,001  
Work in progress
    4,155,371       1,280,669  
Finished products
    1,090,178       680,339  
Total:
  $ 14,592,269     $ 9,654,009