INVENTORIES

9 Months Ended

Sep. 30, 2022

INVENTORIES.

INVENTORIES

NOTE 4 – INVENTORIES

Inventories are stated at the lower of cost or net realizable value and include spare parts and finished goods. Inventories are primarily determined using specific identification and the first-in, first-out (“FIFO”) cost methods. Cost includes direct cost from the Current Manufacturer (“CM”) or Original Equipment Manufacturer (“OEM”), plus material overhead related to the purchase, inbound freight and import duty costs.

Inventories consisted of the following at September 30, 2022 and December 31, 2021 (in thousands):

	2022		2021
Finished goods	$	49,577	$	51,346
Spare parts		998		260
Reserve for inventory obsolescence		(1,232)		(599)
Advanced shipping costs		92		584
Inventories, net	$	49,435	$	51,591