Company: ARRY
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001820721-25-000085
Chunk: 50

Company: Array Technologies, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 50
---
 as incurred prior to a respective product being ready for commercial production. Research and development expense was $2.5 million and $1.8 million during the three months ended June 30, 2025 and 2024, respectively, and $4.9 million and $3.7 million during the six months ended June 30, 2025 and 2024, respectively.Recently Issued Accounting PronouncementsIn December 2023, the Financial Accounting Standards Board (the “FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The standard will become effective for the Company’s fiscal year ending December 31, 2025, with early adoption permitted. The Company will adopt this reporting standard with its annual report on Form 10-K for 2025 and expects no material impacts upon adoption.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which requires public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 31, 2026, and for interim periods beginning after December 31, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03. 

3.    Condensed Consolidated Balance Sheet Details 

Inventories, netInventories, net consisted of the following (in thousands): June 30, 2025December 31, 2024Raw materials$57,594 $60,588 Finished goods120,372 140,230 Total Inventories, net$177,966 $200,818 The Company values inventory using the moving average cost method that approximates the first-in, first-out method (“FIFO”). As of June 30, 2025, inventory valued using moving average cost and FIFO was $139.6 million and $38.3 million, respectively. As of December 31, 2024, inventory valued using moving average cost and FIFO, was $154.4 million and $46.4 million,