INVENTORIES, NET

9 Months Ended

Sep. 30, 2024

Inventories consist principally of raw materials, packaging, non-food finished goods and packaged meal replacements, protein powder, and supplements 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, 2024		December 31, 2023

Raw materials	$	6,117	$	7,944
Packaging	1,814		1,962
Non-food finished goods	2,205		3,703
Finished goods	31,333		43,248
Allowance for obsolete inventory	(1,374)		(2,266)
Total	$	40,095	$	54,591