ACCOUNTS RECEIVABLE, NET AND INVENTORIES

12 Months Ended

Dec. 31, 2025

ACCOUNTS RECEIVABLE, NET AND INVENTORIES

ACCOUNTS RECEIVABLE, NET, AND INVENTORIES

Accounts receivable, net comprised the following:


	December 31,
	2025		2024
Trade accounts receivable	$	7,706	$	14,112
Allowance for credit losses	(362)		(706)
Other receivables	842		1,350
Total accounts receivable, net	$	8,186	$	14,756

The change in the allowance for credit losses consisted of the following:


	Years ended December 31,
	2025		2024
Beginning balance	$	(706)	$	(920)
Changes in estimates	(838)		(1,006)
Write-offs	928		718
Collections/Other	254		502
Ending balance	$	(362)	$	(706)

Inventories comprised the following:


	December 31,
	2025		2024
Finished goods	$	25,314	$	44,372
Work-in-process	872		1,137
Raw materials	10,790		12,398
Allowance for inventory obsolescence	(3,652)		(7,274)
Total inventories	$	33,324	$	50,633

Inventories are stated at the lower of cost or net realizable value, and the Company maintains an allowance for excess and obsolete inventory that is based upon assumptions about future demand and market conditions. The allowance for excess and obsolete inventory is subject to increase based on changes in estimates and other factors and decrease based on sales of products and disposals.

HYDROFARM HOLDINGS GROUP, INC. 10-K