Note 6. Inventories

Inventories are stated at the lower of cost (first-in, first-out method) or market (net realizable value). We value at lower of cost or market the slow moving and obsolete inventories based upon current and expected future product sales and the expected impact of product transitions or modifications. Inventories consist of approximately the following:

	March 31, 2017		December 31, 2016

Raw materials	$	4,986,000	$	4,483,000
Work-in-process		140,000		462,000
Finished goods		2,485,000		2,290,000

Total inventory	$	7,611,000	$	7,235,000