BALANCE SHEET COMPONENTS

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS

(4) BALANCE SHEET COMPONENTS

Inventories

Inventories, net consists of the following:

	March 31, 2023		December 31, 2022
Materials	$	346,926	$	397,133
Work in process		5,189,184		5,842,251
Finished goods		17,230,386		19,175,822
	$	22,766,496	$	25,415,206

Finished goods includes consigned inventory held by our customers of $3.6 million and $4.2 million at March 31, 2023 and December 31, 2022, respectively, and includes $0 in-transit inventory at March 31, 2023 and December 31, 2022, respectively. The Company reviews inventory for obsolete and slow-moving products each quarter and makes provisions based on its estimate of the probability that the material will not be consumed or that it will be sold below cost. The inventory reserves were $2.5 million and $2.5 million as of March 31, 2023 and December 31, 2022, respectively.

Accrued expenses

Accrued expenses consist of the following:

	March 31, 2023		December 31, 2022
Inventory purchases	$	27,004	$	24,901
Payroll & related benefits		510,538		430,358
Professional fees		214,019		290,588
Royalty costs		1,712,500		1,650,000
Sales allowances		1,453,797		1,226,856
Sales and use tax		116,992		113,200
Other		694,203		704,821
	$	4,729,053	$	4,440,724