Inventory, net (current and non current)

3 Months Ended

Mar. 31, 2026

Inventory, net (current and non current)

Inventory, net, consists of the following as of:


(in thousands)	March 31, 2026		December 31, 2025
Raw materials (net of reserves)	$	5,457	$	8,357
Work in progress	243		395
Finished goods	1,219		199
	$	6,919	$	8,951

Inventory, current portion	$	1,465	$	3,258
Inventory, non-current portion (1)	$	5,454	$	5,693

1) Non-current inventory presented as part of Other non-current assets in the Unaudited Condensed Consolidated Balance Sheets

The inventory reserve was $5.7 million and $21.1 million as of March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026 the Company decreased its lower-of-cost-and-net-realizable-value inventory reserve by $15.4 million. There was no change in the inventory reserve during the three months ended March 31, 2025. The decrease during the three months ended March 31, 2026 was primarily attributable to the sale of certain battery pack inventory for which a reserve had previously been recorded. As a result, the related inventory reserve was utilized against the carrying value of the inventory disposed of during the period. In connection with this transaction, the Company reduced gross inventory by $17.3 million, utilized $15.4 million of previously recorded inventory reserves, recognized proceeds from the sale of $1.6 million, and recorded a loss on disposal of $0.3 million.