Inventories

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



	2013		2012

Raw materials and work in process	$	2,025,020	$	1,310,670
Finished goods	3,697,862		4,907,685
Total inventories	$	5,722,882	$	6,218,355

Caldolor inventory represented the majority of net inventory on hand at December 31, 2013 and December 31, 2012, and had varying original expiration dates that began in the second quarter of 2014 and extended through January 2015. During 2013, the Company provided stability data to the FDA supporting that the Caldolor product expiration dates may be extended by up to a year. In January 2014, the FDA notified the Company that it had approved its request to extend the original shelf life of the Caldolor 800mg vials from five to six years.

At December 31, 2013 and 2012, the Company has recognized amounts for potential obsolescence and discontinuance of approximately $3.5 million and $2.6 million, respectively, primarily for Caldolor. If actual sales in future periods are less than projected sales, the Company could incur additional obsolescence losses.

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.