BALANCE SHEET COMPONENTS

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS

(4) BALANCE SHEET COMPONENTS

Inventories

Inventories, net consists of the following:

	September 30, 2023		December 31, 2022
Materials	$	208,156	$	397,133
Work in process		1,622,249		5,842,251
Finished goods		8,662,616		19,175,822
	$	10,493,021	$	25,415,206

Finished goods includes consigned inventory held by our customers of $0 million and $4.2 million at September 30, 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 $1.6 million and $2.5 million as of September 30, 2023 and December 31, 2022, respectively.

Accrued expenses

Accrued expenses consist of the following:

	September 30, 2023		December 31, 2022
Inventory purchases	$	—	$	24,901
Payroll & related benefits		37,152		430,358
Professional fees		233,232		290,588
Royalty costs		—		1,650,000
Sales allowances		875,118		1,226,856
Sales and use tax		81,158		113,200
Other		172,347		704,821
	$	1,399,007	$	4,440,724