Note 6 - Inventory

9 Months Ended

Sep. 30, 2012

Inventory Disclosure [Text Block]

NOTE F – INVENTORY

Inventory consisted of the following as of September 30, 2012 and December 31, 2011:

	September 30, 2012		December 31, 2011
Current Inventory
Finished Goods – Net of allowances of $1,144,000 and $1,151,000, respectively	$	438,715	$	873,341
Raw Materials – Net of allowances of $54,000 and $38,000, respectively		235,988		410,209
Total	$	674,703	$	1,283,550
Noncurrent Inventory
Raw Materials	$	1,326,161	$	1,373,545
Finished Goods		108,705		573,102
Total	$	1,434,866	$	1,946,647

Typically, finished goods and work-in-process inventory are fully reserved except for the amounts deemed saleable by management based upon current or anticipated orders, primarily under contractual arrangements. Our reserves for finished goods and raw materials were $1,198,000 at September 30, 2012, an increase of $9,000 from December 31, 2011. Based upon expected future orders, $109,000 of our finished goods inventory and $1,326,000 of our raw material inventory were classified as a noncurrent asset at September 30, 2012. We expect this inventory to be fully recoverable, therefore no reserve was established. In 2010, we temporarily ceased production of calcitonin and enzyme. This cessation of production continued through 2012, however, the Company plans to engage in the production of calcitonin in the first quarter of 2013.  The Company is in the process of assessing whether production of enzyme will be continued internally or outsourced and how that decision will impact the carrying value of our inventories and fixed assets.