Inventories, net

3 Months Ended

Mar. 31, 2022

Inventories, net

4. Inventories, Net

4. Inventories, Net

On July 1, 2021, the Company changed its accounting for inventory to burden the material at the time of purchase receipts. Prior to July 1, 2021, the Company applied the material burden at the time the inventory was issued to work in progress.

The fiscal 2021 financial statements have been retrospectively adjusted to apply the new inventory change method. The cumulative effect of this change on periods prior to those presented herein resulted in a net decrease in accumulated deficit of approximately $1,104 as of January 1, 2021.

Inventories, which are presented net of allowance for slow moving, excess, or obsolete, consisted of the following:

	March 31, 2022		December 31, 2021
Finished goods	$	2,465	$	2,335
Work in process		6,274		4,527
Raw materials		12,352		10,116
	$	21,091	$	16,978

Allowances for slow-moving, excess, or obsolete inventory are used to state the Company’s inventories at the lower of cost or net realizable value. The allowances were approximately $1,214 at March 31, 2022, compared with approximately $1,288 at December 31, 2021.

As a result of the retrospective application of this change in accounting method, the following financial statement line items within the accompanying fiscal 2021 Condensed Consolidated financial statements were adjusted as follows:

	As Originally Reported ($)			Effect of Change ($)			As Reported under Change in Accounting Principle  ($)
Condensed Income Statements
Cost of goods sold:
Three months ended March 31, 2021		5,468			(24	)		5,444
Loss before income taxes:
Three months ended March 31, 2021		(694	)		24			(670	)
Net loss:
Three months ended March 31, 2021		(694	)		24			(670	)
Net loss income per share-basic and diluted:
Three months ended March 31, 2021		(0.06	)		0.01			(0.05	)
Condensed Statements of Cash Flows
Net loss as of March 31, 2021		(694	)		24			(670	)
Inventories allowance		289			11			300
Inventories		(1,359	)		(35	)		(1,394	)