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INVENTORIES

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

6. INVENTORIES

The components of inventories are summarized below:

		December 31,
		2018				2017
Raw materials		$	14,952			$	10,376
Work in process			5,547				5,082
Finished goods			7,323				10,919
Provision for excess and obsolete inventory			(512	)			(264	)
Total inventories		$	27,310			$	26,113

Inventories are stated at the lower of cost or a net realizable basis determined on a FIFO method. Included in raw materials and finished goods at December 31, 2018 and December 31, 2017 are goods in transit of approximately $7.7 million and $3.1 million, respectively.

At December 31, 2017, raw materials in the amount of $3.0 million, not pledged to our secured creditor were used for collateral to secure short term borrowings under a product financing arrangement. This short term borrowing agreement provides the Company with the ability to acquire raw materials utilized in connection with its manufacturing process. The Company generally satisfies its obligations within 60 days of the initial borrowings, which yields an interest expense that is immaterial. The aggregate borrowings under this agreement amounted to $5.4 million as of December 31, 2017. There were no aggregate borrowings under this agreement as of December 31, 2018.