Inventories

The Company's inventories consisted of the following as of December 31:



	2012		2011

Raw materials	$	1,310,670	$	774,637
Finished goods	4,907,685		5,000,057
Total inventories	$	6,218,355	$	5,774,694

Caldolor inventory represented the majority of net inventory on hand at December 31, 2012 and 2011 and has varying expiration dates that begin in the second quarter of 2014 and extend through January 2015. At December 31, 2012 and 2011, the Company has recognized amounts for potential obsolescence and discontinuance of approximately $2.6 million and $2.1 million, respectively, primarily for Caldolor. If actual sales in future periods are less than projected sales, the Company could incur additional obsolescence losses.

In the fourth quarter of 2010, the Company purchased certain packaging materials for the Caldolor product which is included in raw materials inventory and maintained at its third-party manufacturer.

In connection with the acquisition of certain product right assets related to the Kristalose brand as discussed in Note 6, the Company is responsible for purchasing the active pharmaceutical ingredient for Kristalose and maintains this raw material inventory at its third-party manufacturer. As the ingredients are consumed in production, the value of the ingredients is transferred from raw materials to finished goods.