Note 5 – Inventories

Inventories net of reserves are summarized as follows:

	September 30,		December 31,
	2015		2014
Raw Materials	$	4,791	$	5,151
Work in process		2,233		3,045
Finished Goods		5,391		5,487
		12,415		13,683
Less current inventory		(7,623)		(9,257)
		4,792		4,426
Less reserve for slow moving and obsolete inventory		(3,401)		(2,798)
	$	1,391	$	1,628

Inventories are stated at the lower of cost, determined by the first-in, first-out (“FIFO”) method, or market.

The Company periodically analyzes anticipated product sales based on historical results, current backlog and marketing plans. Based on these analyses, the Company anticipates that certain products will not be sold during the next twelve months. Inventories that are not anticipated to be sold in the next twelve months, have been classified as non-current.

Approximately 100% and 66% of the non-current inventories were comprised of finished goods at both September 30, 2015 and December 31, 2014, respectively. The Company has established a program to use interchangeable parts in its various product offerings and to modify certain of its finished goods to better match customer demands. In addition, the Company has instituted additional marketing programs to dispose of the slower moving inventories. During the three and nine months ended September 30, 2015, the Company increased the inventory reserve by $1,008 and $1,026, respectively.

The Company continually analyzes its slow-moving inventories. Based on historical and projected sales volumes and anticipated selling prices, the Company establishes reserves.