INVENTORIES

Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method. Inventory we manufacture includes the cost of material, labor and overhead. If the cost of inventories exceeds estimated net realizable value, provisions are made to reduce the carrying value to estimated net realizable value.

Inventories, net consist of the following (in thousands):



	June 30,			December 31,
	2017			2016
Raw materials	$	12,551		$	10,807
Work in process	4,413			3,820
Finished goods	10,508			7,087
Allowance for excess or obsolete inventory	(1,404		)	(1,319		)
Total inventory, net	$	26,068		$	20,395