Note 2. Inventories

Inventories consist of the following at June 30, 2021 and September 30, 2020:

The Company records its inventory at the lower of cost or net realizable value. For the nine months ended June 30, 2021 and the fiscal year ended September 30, 2020, the Company did not record any adjustments to reduce inventory to net realizable value. 

The Company was eligible for Hurricane Irma federal relief programs for block grants that were being administered through the State of Florida. For the fiscal years ended September 30, 2020 and 2019, the Company received approximately $4,629,000, which was received during the nine months ended June 30, 2020, and $15,597,000, respectively, under the Florida Citrus Recovery Block Grant (“CRBG”) program. These federal relief proceeds represented Part 1 and Part 2 reimbursement under the program. In the nine months ended June 30, 2021, the Company received approximately $4,299,000, representing reimbursement under Part 3 of the program. These federal relief proceeds are included as a reduction to operating expenses in the Condensed Consolidated Statements of Operations.