INVENTORIES

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

Inventories consist of the following:

	September 30,		December 31,
	2024		2023
Harvested hemp and seeds	$	3,553	$	9,300
Raw materials	11,892		9,726
Finished goods	6,780		6,320
	22,225		25,346
Less: inventory provision	(2,693)		(3,808)
Total inventory	$	19,532	$	21,538

Inventory Provision

For the nine months ended September 30, 2024, inventory provisions of $3,926 were expensed through cost of goods sold in the condensed consolidated statements of operations. The increase in the inventory provision was primarily due to the revaluation on aged hemp based on current market conditions. For the nine months ended September 30, 2024, write-offs of inventory previously reserved for of $5,041 were recognized.

Additionally, for the nine months ended September 30, 2024 and 2023, the Company sold harvested hemp that had a full inventory provision. The sale of hemp resulted in a $235 and $12,854 reduction to the inventory provision as of September 30, 2024 and 2023, respectively.