INVENTORIES	9 Months Ended
Sep. 30, 2017
INVENTORIES	INVENTORIES Inventories at September 30, 2017 and December 31, 2016, consist of work in process at various stages of production and finished goods. This inventory, which consists primarily of mobile communications devices, aeroptic cameras and radars, are valued at the lower of cost (as calculated using the weighted-average method) or net realizable value. The cost of the work in process consists of materials put into production, the cost of labor and an allocation of overhead costs. At September 30, 2017 and December 31, 2016, the Company had an inventory reserve balance of $0.9 million and $0.6 million, respectively, for certain products where the market has not developed as expected.

INVENTORIES

9 Months Ended

Sep. 30, 2017

Inventories at September 30, 2017 and December 31, 2016, consist of work in process at various stages of production and finished goods. This inventory, which consists primarily of mobile communications devices, aeroptic cameras and radars, are valued at the lower of cost (as calculated using the weighted-average method) or net realizable value. The cost of the work in process consists of materials put into production, the cost of labor and an allocation of overhead costs. At September 30, 2017 and December 31, 2016, the Company had an inventory reserve balance of $0.9 million and $0.6 million, respectively, for certain products where the market has not developed as expected.