11. Inventories 

Inventories are valued at the lower of cost and net realizable value. Net realizable value is equal to the selling price less the estimated costs of selling and/or disposing of the product. Cost is determined using the average cost method, which approximates cost determined by the first-in, first-out (“FIFO”) method. Finished product inventories at March 31, 2026 and December 31, 2025 are stated net of a reserve of $27,000 and $32,000 respectively, for slow-moving and obsolete inventory.