Veru Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 3 - Inventories

Note 3 - Inventories

12 Months Ended

Sep. 30, 2012

Note 3. Inventories

The components of inventory consist of the following at September 30, 2012 and 2011:

	2012			2011
Raw material	$	523,201		$	435,947
Work in process		57,102			64,149
Finished goods		927,706			1,602,384
Inventory, gross		1,508,009			2,102,480
Less: inventory reserves		(49,810	)		(75,952	)
Inventory, net	$	1,458,199		$	2,026,528

The change in the inventory reserve for the years ended September 30 is as follows:

Year	Balance at October 1	Charged to Costs and Expenses	Write-offs	Balance at September 30
2010	$ 95,574	$ (2,066)	$ (78,044)	$ 15,464
2011	$ 15,464	$ 177,726	$ (117,237)	$ 75,952
2012	$ 75,952	$ 128,360	$ (154,502)	$49,810

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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