INVENTORIES

Inventories are stated at the lower of standard cost (which approximates actual cost determined using the first-in, first-out cost method) or net realizable value and consists of the following (in thousands):



	At December 31,
	2019			2018
Raw materials	$	4,064		$	4,041
Finished goods	5,749			8,229
Reserve for excess, obsolete, and slow-moving inventories	(3,645		)	(4,212		)
Inventories, net	$	6,168		$	8,058

During 2019, management implemented a purchasing freeze and cost-cutting measures resulting in lower procurement in the first half of 2019, with only selective and necessary purchases done in the second half of 2019. During the second half of 2019, management negotiated cost reduction terms with suppliers on certain products. This initiative, in conjunction with, a price adjustment strategy on products we have in excess inventory, resulted in a net reduction of our gross inventory levels and excess inventory reserves of $1.9 million compared to 2018.