2. Inventories, net

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

2. Inventories, net

Inventories, which are presented net of allowance for obsolete and slow-moving inventory, consisted of the following:

	December 31,
	2017		2016
Finished goods	$	2,825	$	3,216
Work in process		7,111		6,612
Raw materials		4,422		4,171
	$	14,358	$	13,999

Changes in the allowance for obsolete and slow-moving inventory are as follows:

	Years Ended December 31,
	2017			2016
Balance, beginning of year	$	1,607		$	1,685
Charged to cost of sales		149			180
Disposal of inventory		(967	)		(258	)
Balance, end of year	$	789		$	1,607

Following leadership changes, in the third quarter of 2017, the Company launched a comprehensive evaluation of its products, markets and strategies through the remainder of the year. As a result of this evaluation, the Company recognized a direct charge to cost of products of $3,200 to write-off inventory with limited customer market opportunities, primarily due to concerns regarding technology and production costs.

For the years ended December 31, 2016 and 2017, the Company wrote off obsolete inventory that had been fully allowed for previously, which had no material impact to the Company’s consolidated balance sheets or consolidated statements of operations.