Annual report pursuant to Section 13 and 15(d)

Note 6 - Trade Inventory

Note 6 - Trade Inventory
12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Inventory Disclosure [Text Block]

6. Trade Inventory


The Company’s trade inventory consisted of the following (in thousands):



December 31,


December 31,






Raw materials

  $ 9,130       8,545  

Paper goods and packaging materials

    2,185       1,777  

Work in process

    1,736       955  

Finished goods

    37,108       34,300  

Total trade inventory

    50,159       45,577  

Inventory reserve

    (1,293 )     (3,682 )

Total trade inventory, net

  $ 48,866     $ 41,895  


Renin reviews its slow-moving and obsolete inventory for potential write-downs on a quarterly basis. During the fourth quarter of 2021, Renin commenced a strategic initiative to exit and consolidate certain warehouse facilities, and as a result of this initiative, Renin determined that it would discount various slow-moving inventories to accelerate the sale of such inventories. As a result of this determination, Renin recognized a $2.4 million write-down on certain slow-moving inventories, which is included in cost of trade sales for the year ended December 31, 2021, in order to reflect such inventories at their estimated realizable value based upon the expected discounts necessary to sell the inventories within the desired timeframes.