Inventories

9 Months Ended

Sep. 30, 2019

Inventories [Abstract]

Inventories

2. INVENTORIES

Inventories consist principally of packaged meal replacements held in the Company’s warehouses. Inventory is stated at the lower of cost or net realizable value, utilizing the first-in, first-out method. The cost of finished goods includes the cost of raw materials, packaging supplies, direct and indirect labor and other indirect manufacturing costs. On a quarterly basis, management reviews inventory for unsalable or obsolete inventory.

Inventories consisted of the following (in thousands):

	September 30, 2019		December 31, 2018
Raw materials	$	12,680	$	11,156
Packaging		3,592		1,563
Non-food finished goods		5,102		2,391
Finished goods		33,766		25,509
Reserve for obsolete inventory		(3,215)		(1,731)
Total	$	51,925	$	38,888