4. Inventory

Inventory, net at September 30, 2016 and December 31, 2015 consists of:


*(Dollars in thousands)*	September 30, 2016		December 31, 2015
Raw materials	$	1,156	$	1,587
Work in process		711		2,659
Finished goods		8,252		6,538

Total	$	10,119	$	10,784

Cost is determined on a first in, first out, or FIFO, basis and includes material costs, labor and applicable overhead. The Company reviews its inventory for excess or obsolescence and writes down inventory that has no alternative uses to its net realizable value. The inventory reserves at September 30, 2016 and December 31, 2015 were $1.7 million and $2.3 million, respectively.