Inventory

3 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

Inventory

3. Inventory

Inventory costs are tracked on a lot-identified basis and are included as cost of product revenues when sold. Inventories are stated at the lower of cost or net realizable value. The Company makes adjustments to inventory when conditions indicate that the net realizable value may be less than cost due to physical deterioration, obsolescence, changes in price levels, or other factors. Additional adjustments to inventory are made for excess and slow-moving inventory on hand that is not expected to be sold within a reasonable timeframe to reduce the carrying amount to its estimated net realizable value. The write-downs to inventory are included in cost of product revenues and are based upon estimates about future demand from the Company’s customers and distributors and market conditions. The Company recorded a write-down of hemp seed inventories of $160,000 during the three months ended March 31, 2021. The Company recorded write-downs of wheat inventory of $59,000 for the three months ended March 31, 2020. If there are significant changes in demand and market conditions, substantial future write-downs of inventory may be required, which would materially increase our expenses in the period the write down is taken and materially affect our operating results.

Inventories, net consist of the following (in thousands):

	March 31, 2021		December 31, 2020
Raw materials	$	849	$	966
Goods in process		636		1,921
Finished goods		5,468		4,410
Inventories	$	6,953	$	7,297