Note 4 - Inventories

12 Months Ended

Dec. 31, 2018

Inventories

Inventories, net of reserves, consisted of the following:

	As of December 31,
	2018		2017
Current:
Raw materials	$	1,795	$	197
Finished goods		11,433		14,218
Total	$	13,228	$	14,415
Long-term:
Raw materials	$	2,165	$	2,682
Finished goods		6,788		6,026
Total	$	8,953	$	8,708

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

and

$1,555

as of

December 31, 2018

and

2017,

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

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

$787

and

$649

during the years ended

December 31, 2018

and

2017,

respectively.