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2. INVENTORY

6 Months Ended

Jun. 30, 2014

Inventory Disclosure [Abstract]

Inventory consisted of the following:

		June 30,				December 31,
		2014				2013
Raw materials		$	24,248,940			$	28,259,707
Work in process			1,164,355				853,602
Finished goods			3,516,300				3,590,937
			28,929,595				32,704,246
Obsolescence reserve			(7,968,701	)			(8,027,126	)
Total Inventory		$	20,960,894			$	24,677,120

As of June 30, 2014, the entire work-in process inventory includes the raw material and other production costs related to the trial production at the new injectable lines of the new facility. Under the current regulation, the Company is allowed to sell qualified finished goods from trial production once the new production line obtains the new GMP certification. Management estimated this balance to be categorized as qualified finished goods upon obtaining the new GMP certification.

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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