INVENTORIES

Inventories are stated at the lower of cost or market. Cost is determined on a first in, first out basis. Finished goods and work-in-process inventories include material, labor and overhead costs. Factory overhead costs are allocated to inventory manufactured in-house based upon labor hours.

Inventories consisted of the following:



(In thousands)	March 31, 2019 as Restated			December 31, 2018
Raw materials	$	5,032		$	4,521
Finished goods	964			1,215
Gross inventories	5,996			5,736
Less: reserve for obsolescence	(398		)	(439		)
Net inventories	$	5,598		$	5,297