Inventories

6 Months Ended

Jun. 30, 2022

2. Inventories

Inventories as of June 30, 2022 and December 31, 2021 consist of the following (in thousands):


	June 30, 2022			December 31, 2021
Finished goods	$	5,397		$	9,594
Semi-finished goods and work-in-process		30,443			25,968
Raw materials		10,305			9,443
Materials in-transit		229			95
Less: inventory reserve		(10,206	)		(5,730	)

Inventories, net	$	36,168		$	39,370

Changes in inventory reserve for the three and six months ended June 30, 2022 and 2021 are as follows (in thousands):


	Three Months Ended			Six Months Ended			Three Months Ended			Six Months Ended

	June 30, 2022						June 30, 2021
Beginning balance	$	(5,555	)	$	(5,730	)	$	(6,281	)	$	(5,901	)
Change in reserve
Inventory reserve charged to costs of sales		(6,093	)		(7,700	)		(3,186	)		(5,350	)
Sale of previously reserved inventory		872			2,324			1,343			1,977

		(5,221	)		(5,376	)		(1,843	)		(3,373	)
Write off		84			295			28			930
Translation adjustments		486			605			(5	)		243

Ending balance	$	(10,206	)	$	(10,206	)	$	(8,101	)	$	(8,101	)

Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods,

work-in-process

and raw materials. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped.