INVENTORY - Note 7

6 Months Ended

Jun. 30, 2020

Inventory Disclosure

Inventory - Note 7

7. INVENTORY

Inventory consists of the following:

		June 30,		December 31,
(in thousands)		2020		2019
Raw materials	$	-	$	-
Finished goods		-		192
	$	-	$	192

Inventory consists of raw materials and finished goods assemblies. Inventory is computed using the first-in, first-out (FIFO) method and is stated at the lower of cost and net realizable value. Management periodically assesses the need to account for obsolescence of inventory and adjusts the carrying value of inventory to its net realizable value when required. As of December 31, 2019, $168,000 of materials that were not expected to be consumed during the next twelve months were classified as "other assets" on the balance sheet. During the six months ended June 30, 2020 and 2019, we recorded inventory write-downs of $168,000 and $852,000, respectively.