4. Inventory

9 Months Ended

Sep. 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):

		September 30,		December 31,
		2015		2014
Raw materials	$	1,896	$	499
Work-in-process		2,265		-
Finished goods		8,679		12,200
Inventory, gross		12,840		12,699
Reserve for obsolescence		(2,179)		(2,220)
Inventory, net	$	10,661	$	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 September 30, 2015 and December 31, 2014. The increase included in raw materials was $0 and $97,000 as of September 30, 2015 and December 31, 2014, respectively.