4. Inventory

6 Months Ended

Jun. 30, 2015

Inventory Disclosure [Abstract]

Inventory

Note 4. Inventory

Inventories are stated at the lower of cost or market. Inventories consist of the following (in thousands):

		June 30,		December 31,
		2015		2014
Raw materials	$	1,399	$	417
Packaging materials		41		82
Work-in-process		823		-
Finshed goods		9,744		12,200
Inventory, gross		12,007		12,699
Reserve for obsolescence		(2,942)		(2,220)
Inventory, net	$	9,065	$	10,479

An increase in the basis of inventory related to the acquisitions of Cypress and Somaxon are included in the balances above as of June 30, 2015 and December 31, 2014. The increase included in raw materials was $0 and $97,000 as of June 30, 2015 and December 31, 2014, respectively.