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INVENTORIES

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

INVENTORIES

6. INVENTORIES

The components of inventories are summarized below:

		March 31,				December 31,
		2019				2018
		(Unaudited)
Raw materials		$	16,428			$	14,952
Work in process			5,978				5,547
Finished goods			5,840				7,323
Provision for excess and obsolete inventory			(552	)			(512	)
Total inventories		$	27,694			$	27,310

Inventories are stated at the lower of cost or a net realizable value determined on a FIFO method. Included in raw materials and finished goods at March 31, 2019 and December 31, 2018 are goods in transit of approximately $8.4 million and $7.7 million, respectively.

At March 31, 2019, raw materials in the amount of $8.1 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 $1.8 million as of March 31, 2019. There were no aggregate borrowings under this agreement as of December 31, 2018.