Inventories, Net

9 Months Ended

Sep. 30, 2022

Inventories, Net

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 Company believes that this method improves financial reporting by better reflecting the current value of inventory on the consolidated balance sheets, by providing better matching of revenues and expenses. The fiscal 2020 financial statements have been retrospectively adjusted to apply the new inventory change. The cumulative effect of this change on periods prior to those presented herein resulted in a net increase in inventory and a net decrease in accumulated deficit of approximately $1,104 as of December 31, 2020.

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

	September 30, 2022		December 31, 2021
Finished goods	$	3,830	$	2,335
Work in process		8,635		4,527
Raw materials		13,867		10,116
	$	26,332	$	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 September 30, 2022, compared with approximately $1,288 at December 31, 2021.