Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or net realizable value. The Company evaluates and adjusts as necessary its excess and obsolescence reserve on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. Inventory cost includes material, labor and overhead. Inventories consist of the following:


	June 30, 2026		December 31, 2025
Raw materials	$	76,201	$	78,256
Work-in-progress	6,187		5,610
Finished goods	30,611		22,556
Total inventories, net	$	112,999	$	106,422

Inventory valued using the FIFO method was $93,478 and $91,848 at June 30, 2026 and December 31, 2025, respectively. Inventory valued using the average cost method was $19,521 and $14,574 at June 30, 2026 and December 31, 2025, respectively.