Inventory

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Inventory

4. Inventory

Inventory is stated at the lower of cost or net realizable value (“LCNRV”) and generally consists of raw materials and work in progress. The Company calculates inventory value on the first-in, first-out (“FIFO”) basis. NRV is the estimated selling price of inventory in the ordinary course of business, less estimated costs of completion, disposal, and transportation. The Company assesses the valuation of inventory and periodically adjusts its value for estimated excess and obsolete inventory based upon expectations of future demand and market conditions, as well as damaged or otherwise impaired goods. The following table summarizes the components of inventory in the unaudited condensed consolidated balance sheets at September 30, 2023 and December 31, 2022 (in thousands):

	September 30, 2023		December 31, 2022
Raw materials	$	—	$	98
Work in process		—		—
Total inventory	$	—	$	98

During the three months ended September 30, 2023, the Company determined it would no longer be able to complete the remaining work in process related to a customer contract for battery systems and components. As a result, the net realizable value of the inventory was $0, and the Company wrote-off approximately $0.90 million of inventory to cost of goods sold in the accompanying unaudited condensed consolidated statements of operations.