Annual report pursuant to Section 13 and 15(d)

Inventory

v3.24.0.1
Inventory
 12 Months Ended
Dec. 31, 2023
Inventory Disclosure [Abstract]  
Inventory Inventory
Inventory consists of the following components (in thousands).
December 31, 2023 January 1,
2023
Raw materials $ 1,926  $ 481 
Work-in-process 6,687  106 
Finished goods 124  47 
Total inventory $ 8,737  $ 634 
Inventory is stated at the lower of cost or net realizable value on a FIFO basis. Inventory costs include direct materials, direct labor, and manufacturing overhead. When the estimated net realizable values are below the manufacturing costs, a charge to cost of revenue is recorded for finished goods and work in process inventories. For the fiscal year 2023, the Company recorded $11.7 million of inventory reserve as cost of revenue in the Consolidated Statement of Operations.
Currently, the Company is selling product below the manufacturing costs. Accordingly, the Company recorded an allowance to reduce certain inventories to net realizable value of approximately $1.3 million as of December 31, 2023. As of December 31, 2023 and January 1, 2023, the Company did not have excess or obsolete inventory reserve.