Inventory - Note 4

12 Months Ended

Dec. 31, 2016

Inventory Disclosure

Inventory - Note 4

4. INVENTORY

Inventory consists of the following (in thousands):

		December 31,
		2016		2015
Raw materials	$	999	$	232
Finished goods		234		630
	$	1,233	$	862

We recorded inventory write-downs of $187,000 in 2016, $287,000 in 2015, and $42,000 in 2014. At December 31, 2016 and 2015, we recorded aggregate write-downs of $6.6 million and $6.9 million, respectively, offsetting inventory on-hand deemed to be obsolete or scrap inventory. We may enter into arrangements to sell the obsolete or scrap inventory resulting in a gain in the period such transactions are realized.