Inventories

9 Months Ended

Sep. 30, 2022

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 consist of the following (in thousands):


	September 30, 2022		December 31, 2021
Raw materials	$	3,584	$	3,882
Finished goods	5,231		7,034
Reserves for excess, obsolete, and slow-moving inventories	(2,659)		(3,050)
Inventories, net	$	6,156	$	7,866

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


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Beginning balance	$	(2,792)	$	(2,956)	$	(3,050)	$	(2,894)
Accrual	(241)		34		(442)		(64)
Reduction due to sold inventory	21		36		278		72
Write-off for disposed inventory	353		—		555		—
Reserves for excess, obsolete, and slow-moving inventories	$	(2,659)	$	(2,886)	$	(2,659)	$	(2,886)

As part of our expense reduction initiatives, we significantly decreased our warehouse space beginning in the third quarter of 2022. In connection with the space reduction, in the second quarter of 2022, we began disposing of a substantial portion of our excess and obsolete commercial finished goods inventory that was highly reserved, which effort continued into the third quarter of 2022. As of September 30, 2022, approximately $563 thousand, on a gross value basis, of such inventory had been disposed of. Additional inventory management efforts are expected to continue in the fourth quarter of 2022.