NOTE 4 – Inventory

Inventories consisted of the following (in thousands):


	June 30,		June 30,
	2017		2016
Raw materials and supplies	$	5,357	$	6,299
Work-in-process		7,767		7,505
Finished goods		4,113		4,664
		17,237		18,468
Reserve for obsolescence		(2,151)		(855)
Inventory of discontinued operations		(717)		(2,113)
	$	14,369	$	15,500

During the fourth quarter of fiscal year 2017, the Company increased its inventory reserves for excess and obsolete inventory due to a change in business strategy related to the Company’s pricing structure, returned parts that the Company determined could not be profitably re-worked and sold, and increased reserves for slow moving inventory as a result of lower forecasted demand from certain customers, primarily related to firearms industry.