C.	Inventories

Inventories are stated at the lower of actual cost (determined using the first-in, first-out method), or market (estimated realizable value), with adjustments being recorded in the reserve for obsolescence, which was $2,925,000 and $2,802,000 as of June 30, 2015 and December 31, 2014, respectively.

Inventories are comprised of the following (in thousands):

	June 30, 2015		December 31, 2014

Raw materials	$	1,485	$	1,588
Work in process		1,372		1,572
Finished goods		908		1,038
Total Inventories, net	$	3,765	$	4,198