Note 2 – Inventories

The Company's inventories consist primarily of work-in-process inventory, as well as raw materials and finished goods inventory related to the Company's Los Angeles print operation. Work-in-process consists primarily of unbilled labor and overhead costs. Raw materials are stated at the lower of cost or market.

The majority of the Company's inventories are valued on the first-in, first-out (FIFO) basis. The remaining inventories are valued using the last-in, first-out (LIFO) method. The Company periodically evaluates the realizability of inventories and adjusts the carrying value as necessary.

Inventories consist of the following:

	September 30,			December 31,
	2011			2010

Raw materials	$	2,195		$	2,146
Work-in-process		22,540			15,914
Finished Goods		592			1,112
		25,327			19,172
Less: LIFO reserve		(908	)		(922	)

Total	$	24,419		$	18,250