Note 2. Inventories

The Company records its inventory at the lower of cost or net realizable value. For the three months ended December 31, 2022 and the fiscal year ended September 30, 2022, the Company recorded approximately $0 and approximately $6,676,000, respectively, for adjustments to reduce inventory to net realizable value, as a result of the impact of Hurricane Ian, which impacted the Company’s unharvested citrus crop for the fiscal year ended September 30, 2022.

The Company was eligible for Hurricane Irma federal relief programs for block grants that were being administered through the State of Florida. During the fiscal years ended September 30, 2022, 2021 and 2020, the Company received approximately $1,123,000, $4,299,000 and $4,629,000, respectively, under the Florida Citrus Recovery Block Grant (“CRBG”) program. The Company received the remaining portion during the first quarter ended December 31, 2022, of approximately $1,300,000. These federal relief proceeds are included as a reduction to operating expenses in the Condensed Consolidated Statements of Operations.