INVENTORIES

9 Months Ended

Sep. 30, 2023

Inventories consist principally of raw materials, packaging, non-food finished goods and finished packaged meal replacements held in the Company’s warehouses and outsourced distribution centers. Inventories are 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 inventories for unsalable or obsolete inventories.

Inventories consisted of the following (in thousands):


	September 30, 2023		December 31, 2022

Raw materials	$	8,491	$	12,670
Packaging	2,269		3,611
Non-food finished goods	4,426		8,738
Finished goods	49,558		97,675
Reserve for obsolete inventory	(6,517)		(3,838)
Total	$	58,227	$	118,856