NOTE 5: INVENTORIES, NET

	September 30, 2024		December 31, 2023
Raw materials	$	204,083	$	340,604
Work in process		493		20,885
Finished goods		593,807		1,081,960
Total inventories, net	$	798,383	$	1,443,449

The Company records inventory write-downs for excess or obsolete inventory or when it believes that the net realizable value of inventory is less than its carrying value. As of September 30, 2024, the Company examined its current inventory balances, analyzed inventory in its channels and evaluated future installation rates. The Company concluded that significant write-downs are necessary, primarily due to slowdown in the Company's products demand, excess inventory in the channels, repeated price reductions and the introduction of a new generation of products. The Company records write-downs under Cost of revenues, in the consolidated statements of income (loss).

During the three and nine months ended September 30, 2024, the Company recorded write-downs of $627,905 and $638,966, respectively.

During the three and nine months ended September 30, 2023, the Company recorded write-downs of $8,728 and $20,674, respectively.