Quarterly report pursuant to Section 13 or 15(d)

Inventory, Net

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Inventory, Net
9 Months Ended
Sep. 30, 2021
Inventory Disclosure [Abstract]  
Inventory, Net INVENTORY, NET
Inventory, net consists of the following:

September 30, 2021 December 31, 2020
Raw materials $ 54,527,723  $ 16,759,232 
Work in process 19,888,063  422,176 
Finished goods —  277,419 
74,415,786  17,458,827 
Less: inventory reserves (12,911,073) (1,991,815)
Inventory, net $ 61,504,713  $ 15,467,012 

Inventory Valuation

Inventories are stated at the lower of cost or net realizable value. We write-down inventory for any excess or obsolete inventories or when we believe that the net realizable value of inventories is less than the carrying value. We review our inventory to determine whether its carrying value exceeds the net amount realizable upon the ultimate sale of the inventory. This requires us to determine the estimated selling price of our inventory based on market conditions. Once inventory is written-down, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

Should our estimates of future inventory usage or selling prices change, additional and potentially material increases to this reserve may be required. A small change in our estimates may result in a material charge to our reported financial results.

During the three months ended September 30, 2021 and 2020, we recorded write-downs of approximately $3.4 million and $0.3 million, respectively, in Cost of Sales in the Condensed Consolidated Statements of Operations. During the nine months ended September 30, 2021 and 2020, we recorded write-downs of $10.9 million and $0.5 million, respectively, in Cost of Sales in the Condensed Consolidated Statements of Operations.