NOTE 4– Inventory

Inventories consisted of the following (in thousands):



	September 30, 2018		June 30, 2018
Raw materials and supplies	$	5,350	$	5,414
Work-in-process		6,665		5,907
Finished goods		3,132		3,144
		15,147		14,465
Reserve for obsolescence		(1,404)		(2,138)
Inventory of discontinued operations		—		(225)
	$	13,743	$	12,102

During the fourth quarter of fiscal 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 the firearms industry. This higher level of inventory reserves was continued during fiscal year 2018 related to continuing lower demand primarily related to the firearms industry.