INVENTORIES

Inventories are stated at the lower of cost or net realizable values. 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 primarily allocated to inventory manufactured in-house based upon labor hours.

Inventories consisted of the following:



(In thousands)	March 31, 2020			December 31, 2019
Raw materials	$	2,798		$	2,935
Work in process	2,013			1,209
Finished goods	1,401			1,316
Gross inventories	6,212			5,460
Less: provision for obsolescence	(340		)	(392		)
Inventories, net	$	5,872		$	5,068