Inventories

9 Months Ended

Sep. 30, 2020

4. Inventories

Inventories as of September 30, 2020 and December 31, 2019 consist of the following (in thousands):


	September 30, 2020			December 31, 2019
Finished goods	$	5,030		$	10,087
Semi-finished goods and work-in-process		28,919			28,815
Raw materials		5,743			8,449
Materials in-transit		444			—
Less: inventory reserve		(6,505	)		(5,947	)

Inventories, net	$	33,631		$	41,404

Changes in inventory reserve for the three and nine months ended September 30, 2020 and 2019 are as follows (in thousands):


	Three Months Ended			Nine Months Ended			Three Months Ended			Nine Months Ended
	September 30, 2020						September 30, 2019
Beginning balance	$	(5,307	)	$	(5,947	)	$	(11,782	)	$	(4,845	)
Change in reserve
Inventory reserve charged to costs of sales		(3,472	)		(6,541	)		(1,298	)		(10,745	)
Sale of previously reserved inventory		1,578			3,231			914			1,880

		(1,894	)		(3,310	)		(384	)		(8,865	)
Write off		835			1,976			377			1,593
Translation adjustments		(139	)		82			461			789
Reclassified to assets held for sale		—			694			—			—

Ending balance	$	(6,505	)	$	(6,505	)	$	(11,328	)	$	(11,328	)

Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods,

work-in-process

and raw materials. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped.