NOTE 4—INVENTORY

Inventory is valued at the lower of cost or market, with cost determined using the first-in, first-out method, and is comprised of the following (in thousands):

	September 30,		December 31,
	2016		2015
Raw materials	$	4,742	$	3,627
Work-in-process		1,651		1,379
Finished goods		7,150		7,560
Inventory, net	$	13,543	$	12,566

Inventory is net of a provision for excess and obsolete inventory totaling $2.1 million and $2.1 million as of September 30, 2016 and December 31, 2015, respectively.