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Inventories

9 Months Ended

Mar. 31, 2022

Inventories

5. Inventories

Inventories consist of raw materials, work in process and finished goods and are recorded at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. The Company periodically reviews the composition of its inventories to identify obsolete, slow-moving or otherwise unsaleable items. In the event that such items are identified and there are no alternate uses for the inventory, the Company will record a charge to reduce the value of the inventory to net realizable value in the period that the impairment is first recognized. The Company incurred charges of $2.0 million and $7.0 million of inventory during the three months ended March 31, 2022 and 2021, respectively, and $2.4 million and $7.2 million during the nine months ended March 31, 2022 and 2021, respectively. In the three and nine months ended March 31, 2022, the inventory charge of $2.0 million was related to the decision to discontinue or divest certain non-core products (see Note 4 – Revenue Recognition and Note 8 – Goodwill and Other Intangible Assets). The write-down for each of the three and nine months ended March 31, 2021 was primarily due to the changing market conditions for the Company’s Covid-19 test kits.

Inventory balances consist of the following:


		March 31,			June 30,
		2022			2021

	(In thousands)
Raw materials		$	1,796		$	2,269
Work in process			2,222			3,346
Finished goods			9,873			10,724
Inventory, net		$	13,891		$	16,339