INVENTORIES

9 Months Ended

Sep. 30, 2022

INVENTORIES

INVENTORIES

NOTE 5—INVENTORIES

Inventories, which are comprised of chemicals and raw materials available for resale and parts and consumables used in operations, are valued at the lower of cost and net realizable value, with cost determined under the weighted-average method. The significant components of inventory are as follows:

	September 30, 2022		December 31, 2021
	(in thousands)
Raw materials	$	20,159	$	20,396
Finished goods		20,155		24,060
Total	$	40,314	$	44,456

During the Current Quarter and Current Period, the Company recorded net credits to the reserve for excess and obsolete inventory of $0.8 million and $0.6 million, respectively. The Company recorded net charges to the reserve for excess and obsolete inventory of $0.1 million in both the Prior Quarter and Prior Period. Both credits and charges to the reserve for excess and obsolete inventory were recognized within costs of revenue on the accompanying consolidated statements of operations. The Company’s inventory reserve was $3.3 million and $3.9 million as of September 30, 2022 and December 31, 2021, respectively. The reserve for excess and obsolete inventories is determined based on the Company’s historical usage of inventory on hand, as well as future expectations and the amount necessary to reduce the cost of the inventory to its estimated net realizable value.