Inventories

12 Months Ended

Dec. 31, 2020

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


	2020		2019

Raw materials and work in process	$	16,223,162	$	19,345,723
Consigned inventory	128,005		416,468
Finished goods, net of reserve	5,943,732		4,664,055
Total inventories	22,294,899		24,426,246
less non-current inventories	(11,656,742)		(15,554,992)
Total inventories classified as current	$	10,638,157	$	8,871,254

The Company works closely with third parties to manufacture and package finished goods for sale. Based on the arrangements with the manufacturer or packager, the Company will either take title to the finished goods at the time of shipment or at the time of arrival at the Company’s warehouses. The Company then holds such goods in inventory until distribution and sale. These finished goods inventories are stated at the lower of cost or net realizable value with cost determined using the first-in, first-out method.

The Company continually evaluates inventory for potential losses due to excess, obsolete or slow-moving goods by comparing sales history and projections to the inventory on hand. When evidence indicates that the carrying value may not be recoverable, a charge is taken to reduce the inventory to its current net realizable value. At December 31, 2020 and 2019 the Company had recognized and maintained cumulative net realizable value charges for potential obsolescence and discontinuance losses of approximately $0.2 million and $0.1 million, respectively.

In connection with the acquisition of certain product rights related to the Kristalose brand, the Company is responsible for the purchase of the active pharmaceutical ingredient ("API") for Kristalose and maintains the inventory at the third-party packagers. As the API is consumed in production, the value of the API is transferred from raw materials to finished goods. API for the Company's Vaprisol brand is also included in the raw materials inventory total at December 31, 2020 and 2019. Consigned inventory represents Authorized Generic inventory stored with Perrigo until shipment.

As part of the Vibativ acquisition, Cumberland acquired API and work in process inventories of $15.6 million that were classified as non-current inventories. At December 31, 2020, the Vibativ non-current inventory was $11.2 million and $15.3 million at December 31, 2019. The Company had Vibativ finished goods included in the non-current inventories at December 31, 2020 of $2.1 million and we did not have any Vibativ finished goods included at December 31, 2019. At December 31, 2020 and December 31, 2019, Cumberland had $0.4 million and $0.3 million, respectively, in non-current inventory for API related to its ifetroban clinical initiatives.