Inventories

9 Months Ended

Sep. 30, 2024

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 September 30, 2024, the Company had recognized and maintained cumulative net realizable value charges for potential obsolescence and discontinuance losses of approximately $0.02 million. At December 31, 2023, there were no cumulative obsolescence and discontinuance losses necessary.

The Company purchases the active pharmaceutical ingredient ("API") for Kristalose and maintains the inventory of that raw material. API for the Company's Vaprisol and Vibativ brands were included in the assets associated with the acquisition of those brands and are also included in the raw materials inventory. As part of the Vibativ acquisition, the Company acquired API and work in process inventories of $15.6 million that were all initially classified as non-current inventories at the date of acquisition.

As these APIs are consumed in the manufacture of our products, the value of the API involved is transferred from raw materials to finished goods.

Consigned inventory represents Authorized Generic inventory stored with our partner until shipment to their customers.

At September 30, 2024 and December 31, 2023, the Company's net inventories consisted of the following:


	September 30, 2024		December 31, 2023

Raw materials and work in process	$	12,306,377	$	12,619,092
Consigned inventory	154,992		149,701
Finished goods	3,880,227		4,645,098
Total inventories	16,341,596		17,413,891
less non-current inventories	(11,831,927)		(12,804,529)
Total inventories classified as current	$	4,509,669	$	4,609,362

At September 30, 2024 and December 31, 2023, the Company's non-current inventories consisted of the following:


	September 30, 2024		December 31, 2023

Vibativ Raw Materials	$	6,230,671	$	6,611,426
Kristalose Raw Materials	2,850,484		3,263,516
Vaprisol Raw Materials	1,173,442		1,170,641
Sancuso Raw Materials	626,876		574,502
Caldolor Raw Materials	31,488		—
Acetadote Raw Materials	26,585		33,678
Ifetroban Raw Materials	203,383		203,383
Vibativ Finished Goods	486,942		810,454
Sancuso Finished Goods	46,602		—
Caldolor Finished Goods	54,315		67,307
Acetadote Finished Goods	31,517		—
Omeclamox	69,622		69,622
Total inventories classified as non-current	$	11,831,927	$	12,804,529