INVENTORY - Note 6

9 Months Ended

Sep. 30, 2019

Inventory Disclosure

Inventory - Note 6

6. INVENTORY

Inventory consists of the following:

		September 30,		December 31,
(in thousands)		2019		2018
Raw materials	$	-	$	32
Finished goods		241		1,077
	$	241	$	1,109

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 and nine months ended September 30, 2019, we recorded $1.4 million and $2.2 million, respectively, in inventory write-downs. As of September 30, 2019 and December 31, 2018, $168,000 and $1.4 million, respectively, of materials that are not expected to be consumed during the next twelve months are classified as "other assets" on the balance sheet.