Note 4 - Inventories

12 Months Ended

Dec. 31, 2017

Inventories

Inventories, net of reserves, consisted of the following:

	As of December 31,
	2017		2016
Current:
Raw materials	$	197	$	2,291
Finished goods		14,218		9,086
Total	$	14,415	$	11,377
Long-term:
Raw materials	$	2,682	$	599
Finished goods		6,026		1,065
Total	$	8,708	$	1,664

Long-term inventory represents inventory held in excess of our current (next

months) requirements based on our recent sales and forecasted level of sales. We have developed programs to reduce the inventory to normal operating levels in the near future. We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that

loss will be incurred on its sale.

Current finished goods do

not

include distributor channel inventories in the amounts of approximately

$1,555

and

$1,530

as of

December 31, 2017

and

2016,

respectively. Distributor channel inventories represent inventory at distributors and other customers where revenue recognition criteria have

not

been achieved.

The losses incurred on valuation of inventory at the lower of cost or market value and write-off of obsolete inventory amounted to

$649,

$653

and

$496

during the years ended

December 31, 2017,

2016

and

2015,

respectively.