INVENTORY

6 Months Ended

Jun. 30, 2021

Inventories are stated at the lower of cost and net realizable value with cost determined on a first-in, first-out basis by product. The Company capitalizes inventory costs associated with products following regulatory approval when future commercialization is considered probable and the future economic benefit is expected to be realized. The Company commenced capitalizing inventory for AMZEEQ and ZILXI upon FDA approval in October 2019 and May 2020, respectively. The Company periodically reviews its inventory levels and, if necessary, writes down inventory that is expected to expire prior to being sold, inventory in excess of expected sales requirements and inventory that fails to meet commercial sale specifications, with a corresponding charge to cost of goods sold. There were no inventory write-downs during the three and six months ended June 30, 2021 and June 30, 2020.

The following table sets forth the Company’s inventory:


	June 30		December 31
(in thousands)	2021		2020
Raw materials	$	3,466	$	4,042
Work-in-process	680		662
Finished goods	4,133		2,700
Total	$	8,279	$	7,404