INVENTORIES

9 Months Ended

Sep. 30, 2022

INVENTORIES

INVENTORIES

NOTE 6—INVENTORIES

Inventories consist of the following (in thousands):

	September 30, 2022		December 31, 2021
Raw Materials		1,500		—
Work In Progress		8,870		4,741
Finished Goods		1,088		771
Total Inventories	$	11,458	$	5,512

Inventories are classified on the Consolidated Balance Sheets in each respective period (in thousands):

	September 30, 2022		December 31, 2021
CURRENT ASSETS
Inventories	$	6,242	$	5,512
Total recorded in Current Assets		6,242		5,512
NONCURRENT ASSETS
Other assets		5,216		—
Total recorded in Noncurrent Assets		5,216		—
Total Inventories	$	11,458	$	5,512

As of September 30, 2022, the Company has classified $1,500,000 of raw material and $3,716,000 of work in progress inventories as noncurrent assets based on its current demand schedule and expectation that such inventory will be utilized in excess of one year from the balance sheet date. Changes in noncurrent assets are reflected on the consolidated statements of cash flows within the caption of other assets.

During the three and nine months ended September 30, 2022, the Company recorded a $1,200,000 charge in cost of goods sold related to a batch planned for commercial use that did not meet our quality specifications.