NOTE F - INVENTORIES

The components of inventories are as follows (in thousands):

	JUNE 30,		DECEMBER 31,
	2011		2010
Finished goods	$	9,674	$	5,935
Work in process		2,718		2,058
Raw materials and supplies		14,422		10,924

	$	26,814	$	18,917

The Company maintains reserves and records provisions for slow-moving and obsolete inventory as well as inventory with a carrying value in excess of its net realizable value. Inventory at June 30, 2011 and December 31, 2010 was reported net of these reserves of $1,379,000 and $1,612,000, respectively.

As of June 30, 2011 and December 31, 2010, the Company's inventory balances included $2,653,000 and $3,460,000, respectively, related to products which have not yet received approval from the U.S. Food and Drug Administration (“FDA”). During the three months ended June 30, 2011, the Company recorded a reserve of $816,000 related to this inventory based on the timing of expiry for certain products. However, the Company believes that FDA approval is probable for the remaining portion of this inventory and that it will be able to fully recover the costs of this inventory.