INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Significant cost elements included in inventory are material, labor, freight, subcontract costs, and manufacturing overhead. As necessary, we adjust inventory to its net realizable value by recording provisions for excess, slow moving and obsolete inventory. We regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments.

Inventories consist of the following:



	September 30, 2018		December 31, 2017
Raw materials	$	31,259	$	16,255
Work-in-process	7,485		6,120
Finished goods	17,431		13,049
Supplies	321		318

	$	56,496	$	35,742