Inventories net

6 Months Ended

Jun. 30, 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 -inventory, consisted of the following:

	June 30, 2022		December 31, 2021
Finished goods	$	3,023	$	2,335
Work in process		5,237		4,527
Raw materials		14,238		10,116
	$	22,498	$	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 June 30, 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 June 30, 2021		7,124			(142	)		6,982
Income before income taxes:
Three months ended June 30, 2021		1,880			142			2,022
Net income:
Three months ended June 30, 2021		1,696			142			1,838
Net income per share-basic:
Three months ended June 30, 2021		0.13			0.01			0.14
Net income per share-diluted:
Three months ended June 30, 2021		0.12			0.01			0.13
Cost of goods sold:
Six months ended June 30, 2021		12,592			(166	)		12,426
Income before income taxes:
Six months ended June 30, 2021		1,186			166			1,352
Net income:
Six months ended June 30, 2021		1,002			166			1,168
Net income per share-basic and diluted:
Six months ended June 30, 2021		0.08			0.01			0.09
Condensed Statements of Cash Flows
Net income for six months ended June 30, 2021		1,002			166			1,168
Inventories allowance		368			60			428
Inventories		(2,964	)		(226	)		(3,188	)