5.	INVENTORIES

Inventories consist of the following as of:

	September 30,		December 31,
(in thousands)	2014		2013
Raw materials	$	4,455	$	1,480
Packaging materials		671		766
Work-in-progress		391		162
Finished goods		1,945		1,152
		7,462		3,560
Reserve for excess/obsolete inventories		(116)		(42)
Inventories, net	$	7,346	$	3,518

Vendor Concentration

We source the raw materials for our products, including active pharmaceutical ingredients (“API”), from both domestic and international suppliers. Generally, only a single source of API is qualified for use in each product due to the costs and time required to validate a second source of supply. As a result, we are dependent upon our current vendors to supply reliably the API required for ongoing product manufacturing. During the three months ended September 30, 2014, we purchased approximately 49% of our inventory from two suppliers. During the nine months ended September 30, 2014, we purchased approximately 43% of our inventory from the same two suppliers. As of September 30, 2014, amounts payable to these suppliers was $0.8 million. During the three months ended September 30, 2013, we purchased approximately 52% of our inventory from two suppliers. During the nine months ended September 30, 2013, we purchased approximately 32% of our inventory from two suppliers.