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Inventory

3 Months Ended

Mar. 31, 2024

Note 6 — Inventory

Inventories are stated at the lower of cost or net realizable value, with cost principally determined by the weighted-average cost method on a first-in, first-out basis. Such costs include the acquisition cost for raw materials and operating supplies. The Company’s standard payment terms with suppliers may require making payments in advance of delivery of the Company’s products. The Company’s prepaid inventory is applied to the purchase of products once they are delivered.

Inventory consisted of the following as of March 31, 2024 and December 31, 2023:

(In thousands)	March 31, 2024			December 31, 2023
Raw materials	$	22,392		$	23,449
Prepaid inventory		816			924
Finished goods		8,062			7,438
Inventory for resale		4,776			4,882
Inventory, gross		36,046			36,693
Inventory reserves		(17,184	)		(17,599	)
Total inventory, net	$	18,862		$	19,094

Inventory Reserves

The Company establishes an inventory reserve for obsolete, slow moving, and defective inventory. The Company calculates inventory reserves for obsolete, slow moving, or defective items as the difference between the cost of inventory and its estimated net realizable value. The reserves are based upon management’s expected method of disposition.

Changes in the Company’s inventory reserve are as follows:

(In thousands)	Three months ended March 31, 2024			Year ended December 31, 2023
Inventory reserves – beginning of period	$	17,599		$	32,422
(Decrease) increase in inventory reserves		(415	)		(14,823	)
Inventory reserves – end of period	$	17,184		$	17,599