The Company’s inventory for its lithium-ion battery recycling operation is comprised of raw materials, in the form of battery feedstock, and finished goods, in the form of black mass and other metals. Inventory is valued at the lower of average cost or net realizable value. The net carrying value of inventory includes those costs to acquire battery feedstock and any related carrying and processing costs incurred by the Company.

The table below presents the components of inventory as of June 30:

Schedule of Inventories

The balance of the Company’s inventory was written down by $0.9 million and $2.9 million during the fiscal years ended June 30, 2026 and 2025, respectively.