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Inventory
 9 Months Ended
Sep. 30, 2025
Inventory [Abstract]  
Inventory

Note 5 — 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.

  

Inventory consisted of the following related to hemp-derived THC products as of September 30, 2025 and December 31, 2024:

 

   September 30,   December 31, 
(In thousands)  2025   2024 
Finished goods  $3,415   $500 
Raw materials   1,011    
—
 
Packaging materials   699    
—
 
Inventory, gross   5,125    500 
Inventory reserves   (507)   
—
 
Total inventory, net  $4,618   $500 

 

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.