INVENTORY - Note 6

9 Months Ended

Sep. 30, 2018

Inventory Disclosure

Inventory - Note 6

6. INVENTORY

Inventory consists of the following:

		September 30,		December 31,
(in thousands)		2018		2017
Raw materials	$	53	$	53
Finished goods		3,294		4,488
	$	3,347	$	4,541

Inventory consists of raw materials and finished goods assemblies. Inventory is computed using the first-in, first-out (FIFO) method and is stated at the lower of cost and net realizable value. Management periodically assesses the need to account for obsolescence of inventory and adjusts the carrying value of inventory to its net realizable value when required. During the three months ended September 30, 2018 we recorded a write down of inventory of $1.1 million to adjust the value of our finished goods units to their net realizable value. Inventory that will not be consumed through the normal course of business during the next twelve months is classified as "other assets" on the balance sheet.