E.Inventories

Inventories are valued at the lower of cost or net realizable value using the FIFO (first-in, first-out) method. The Company reduces the value of its inventories to net realizable value when the net realizable value is believed to be less than the cost of the item. The inventory reserve for obsolescence as of June 30, 2018 and December 31, 2017 was $1,305,021 and $1,213,000, respectively.

Inventories are comprised of the following (in thousands):

	June 30, 2018		December 31, 2017
Raw materials	$	1,830	$	1,526
Work in process		1,571		1,337
Finished goods		901		1,012
Total Inventories, net	$	4,302	$	3,875