Inventories

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories are stated at the lower of standard cost (which approximates actual cost determined using the first-in, first-out cost method) or net realizable value and consists of the following (in thousands):

	At December 31,
	2021		2020
Raw materials	$	3,882	$	2,695
Finished goods	7,034		5,840
Reserve for excess, obsolete, and slow-moving inventories	(3,050)		(2,894)
Inventories, net	$	7,866	$	5,641

The following is a roll-forward of the reserves for excess, obsolete, and slow-moving inventories (in thousands):

	At December 31,
	2021		2020
Beginning balance	$	(2,894)	$	(3,518)
Accrual	(281)		281
Reduction due to sold inventory	125		343
Reserves for excess, obsolete, and slow-moving inventories	$	(3,050)	$	(2,894)

Throughout 2021, we experienced global supply chain and logistics constraints, which impacted our inventory purchasing strategy, leading to a buildup of inventory and inventory components in an effort to manage both shortages of available components and longer lead times in obtaining components. This resulted in a net increase of our gross inventory levels of $2.4 million and excess inventory reserves of $0.2 million as compared to 2020.

During 2020, we applied discipline in manufacturing and supply chain management, focusing on a reduction of lead time and inventory on hand, which resulted in a net reduction of our gross inventory levels of $1.2 million and excess inventory reserves of $0.6 million compared to 2019.