6. Inventory

Inventory is stated at the lower of cost or net realizable value, or the value of consideration that can be received upon sale of said product, with approximate costs determined on a first-in first-out basis. Inventories consist primarily of raw materials, packaging, and finished goods, and inventory costs include co-packing fees, indirect labor, and allocable overhead. The following table presents the components of inventory as of:

The Company periodically reviews the value of items in inventory and provides write-offs of inventory based on current market assessments, which are charged to cost of goods sold. For the three and six months ended June 30, 2026, the Company recorded $101.6 thousand and $84.1 thousand, respectively, of inventory obsolescence and disposal costs. For the three and six months ended June 30, 2025, the Company recorded $300.2 thousand and $401.9 thousand, respectively, of inventory obsolescence and disposal costs.