Inventories

12 Months Ended

Dec. 31, 2020

INVENTORIES

Inventories are stated at the lower of standard cost (which approximates actual cost determined using the first-in, first-out cost method) or net realizable value and consists of the following (in thousands):


	At December 31,
	2020		2019
Raw materials	$	2,695	$	3,937
Finished goods	5,840		5,749
Reserve for excess, obsolete, and slow-moving inventories	(2,894)		(3,518)
Inventories, net	$	5,641	$	6,168

The following is a roll-forward of the reserves for excess, obsolete, and slow-moving inventories (in thousands):


	At December 31,
	2020		2019
Beginning balance	$	(3,518)	$	(4,085)
Accrual	281		(814)
Reduction due to sold inventory	343		845
Write-off for disposed inventory	—		536
Reserves for excess, obsolete, and slow-moving inventories	$	(2,894)	$	(3,518)

During 2020, we continued to apply discipline in manufacturing and supply chain management, focusing on a reduction of lead time and inventory on hand which resulted in a net reduction of our gross inventory levels and excess inventory reserves of $0.6 million compared to 2019.

During 2019, management implemented a purchasing freeze and cost-cutting measures resulting in lower procurement in the first half of 2019, with only selective and necessary purchases done in the second half of 2019. During the second half of 2019, management negotiated cost reduction terms with suppliers on certain products. This initiative, in conjunction with a price adjustment strategy on products we have in excess inventory, resulted in a net reduction of our gross inventory levels and excess inventory reserves of $1.9 million compared to 2018.