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Inventory - Note 4
 12 Months Ended
Dec. 31, 2015
Inventory Disclosure  
Inventory - Note 4

4. INVENTORY

Inventory consists of the following (in thousands):

      Year Ended December 31,
      2015     2014
Raw materials   $ 232    $ 42 
Finished goods     630      74 
    $ 862    $ 116 

 

Our inventory consists of raw materials and finished goods assemblies. Inventory is stated at the lower of cost or market. Management periodically assesses the need to account for obsolescence of inventory and adjusts the carrying value of inventory to its net-realizable value when required.

In addition, we reduce the value of our inventory to its estimated scrap value when management determines that it is not probable that the inventory will be consumed through the normal course of business during the next twelve months. We recorded inventory write-downs of $287,000 in 2015, compared to $42,000 in 2014. At December 31, 2015 and 2014, we recorded aggregate write-downs of $6.9 million and $6.9 million, respectively, offsetting inventory on-hand deemed to be obsolete or scrap inventory.