Inventories as of June 30, 2026 and December 31, 2025 consist of the following (in thousands):


	June 30, 2026			December 31, 2025
Finished goods	$	7,038		$	7,542
Semi-finished goods and work-in-process		27,249			29,245
Raw materials		4,843			4,198
Materials in-transit		—			—
Less: inventory reserve		(4,994	)		(6,834	)
Inventories, net	$	34,136		$	34,151

Changes in inventory reserve for the three and six months ended June 30, 2026 and 2025 are as follows (in thousands):


	Three Months Ended			Six Months Ended			Three Months Ended			Six Months Ended
	June 30, 2026						June 30, 2025
Beginning balance	$	(6,143	)	$	(6,834	)	$	(8,754	)	$	(7,732	)
Change in reserve
Inventory reserve charged to costs of sales		(834	)		(1,995	)		(1,357	)		(3,656	)
Sale of previously reserved inventory		1,719			3,174			1,578			2,846
		885			1,179			221			(810	)
Write off		172			192			538			735
Translation adjustments		92			469			(500	)		(688	)
Ending balance	$	(4,994	)	$	(4,994	)	$	(8,495	)	$	(8,495	)

Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods, work-in-process and raw materials. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped.