INVENTORY

12 Months Ended

Dec. 31, 2023

. INVENTORY


	As at December 31,
	2023			2022
Raw material		16,787			22,218
Allowance for obsolescence		(1,666	)		(1,242	)
Work in progress		1,456			1,275
		16,577			22,251

As of December 31, 2023, the Company had $1.7 million (2022 - $1.2 million) provided for inventory that is not expected to be used in future production and the associated expense was recorded to cost of goods sold. During 2023, the Company wrote off $1.0 million of inventory against the provision (2022 - $0.5 million) and increased the allowance for obsolescence by $0.4 million (2022 - $0.9 million). In addition, the Company recorded direct write offs against inventory of $0.5 million (2022 - $0.3 million). Production overheads capitalized in work in progress were $0.2 million at December 31, 2023 (2022 - $0.2 million).

Additional costs included in cost of goods sold

During 2021, the Company experienced periods where it was operating below normal capacity levels. During that period, overheads included in inventory were not increased and $1.8 million was included in cost of sales. In 2022, we temporarily suspended operations at the Rock Hill Facility. On September 27, 2023, we announced our intention to permanently close the Rock Hill Facility. As of December 31, 2023, the Company leases the Rock Hill Facility and is actively pursuing sublease arrangements. Idle facility costs being incurred at the Rock Hill Facility are included in cost of sales.


	For the Year Ended December 31,
	2023		2022		2021
Under-utilized capacity		-		-		1,756
Idle facility costs		1,977		506		-
		1,977		506		1,756

Change in presentation in Consolidated Statement of Operations


	For the Year Ended December 31,
	2023		2022		2021
Product cost of sales, as previously presented		119,728		140,058		118,525
Cost of under-utilized capacity, as previously presented		-		-		1,756
Product cost of sales, per Statement of Operations		119,728		140,058		120,281