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INVENTORIES

3 Months Ended

Mar. 31, 2014

NOTE 2 - INVENTORIES

Inventory at March 31, 2014 and December 31, 2013 consisted of the following:

	March 31,		December 31,
	2014		2013
	(U.S. dollars in thousands)
Raw materials	$	2,076	$	2,342
Work in progress		170		92
Finished goods		4,281		5,523
Total inventory	$	6,527	$	7,957

During the three months ended March 31, 2014, the Company recorded approximately $1.1 million for write-down of inventory under cost of revenues.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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