C. Inventories

The Company reduces the value of its inventories to net realizable value when the net realizable value is believed to be less than the cost of the item. The inventory reserve for obsolescence as of December 31, 2017 and 2016 was $1,213,000 and $2,773,000, respectively. During the year ended December 31, 2017, the Company wrote off approximately $1,254,000 in previously reserved obsolete inventory with a zero net realizable value. As a result of being written off, this inventory is no longer included in the Company’s inventory balance or its reserve for obsolescence.

	December 31,
	2017		2016
	(in thousands)
Raw materials	$	1,526	$	1,408
Work in process		1,337		1,306
Finished goods		1,012		924
Total Inventories, net	$	3,875	$	3,638