Note 3. Inventories

For the three and six months ended June 30, 2026, the Company recorded inventory impairment charges of $29,000 and $51,000, respectively, as a result of low pulp prices and high fiber costs. As of June 30, 2026, $18,000 of the write-down was recorded against raw materials inventory and $11,000 was recorded primarily against finished goods inventory. The inventory impairment charges are included in “Cost of sales, excluding depreciation and amortization” in the Interim Consolidated Statements of Operations.