Note 6 - Inventories

	December 31,
	2023		2022
	U.S. Dollars (in thousands)
Components		55,598		43,017
Work in process		20,038		13,951
Finished products *		19,292		13,930

		94,928		70,898

* includes systems at customer locations not yet sold, as of December 31, 2023 and 2022, in the amount of $8,626 and $5,664 respectively.

Inventories are presented in:

	December 31,
	2023		2022
	U.S. Dollars (in thousands)
Current assets		85,905		65,541
Non-current assets (A)		9,023		5,357

		94,928		70,898

(A)

Long-term Inventory:

At December 31, 2023, $9,023 of the Company's inventory is classified among long-term assets according to Management’s estimate based on the recent level of sales (at December 31, 2022 - $5,357). These amounts are comprised of spare parts. The Company’s policy is to keep components to provide support and service to systems sold by it to its customers over the past years (usually the support is over a period of seven to ten years) until the Company announces it will not continue to support certain systems. Therefore, this inventory is usually consumed over longer periods than inventory classified as current, and as such the respective amount that is not expected to be consumed in the next year is classified as non-current. Management believes that this inventory will be utilized according to its forecasted sales and that no loss will be incurred.

(B)

Inventory provision

In 2023, based on Management's estimates regarding future sales, a provision of $1,204 was made against damaged, obsolete, excess and slow-moving inventory (in 2022 - $263). This includes certain items which were considered obsolete following the acquisition of FRT.

The provisions were recorded in the costs of revenues line item in the consolidated statement of income. The provisions result in a new cost basis that is not subsequently marked up based on changes in underlying facts and circumstances.