3.	Inventories

Inventories are comprised of NUEDEXTA finished goods and the active pharmaceutical ingredients of NUEDEXTA, dextromethorphan (“DM”) and quinidine (“Q”), as well as the active pharmaceutical ingredient docosanol.

The composition of inventories as of September 30, 2013 and 2012 is as follows:


	September 30,
	2013			2012
Raw materials	$	936,856		$	1,026,250
Work in progress		36,453			43,828
Finished goods		521,056			253,761

Total inventory		1,494,365			1,323,839
Less: current portion		(710,179	)		(415,475	)

Non-current portion	$	784,186		$	908,364

The amount classified as non-current inventories is comprised of the raw material components for NUEDEXTA, DM and Q, which will be used in the manufacture of NUEDEXTA capsules beyond our one year operating cycle.

The following table presents the activity in inventory reserves for the last three fiscal years:


	Balance at September 30, 2012		Additional Reserves		Usage			Balance at September 30, 2013
Reserve for excess and obsolete inventory
Reserve for NUEDEXTA	$	57,080	$	—	$	(16,249	)	$	40,831
Reserve for docosanol		316,400		—		—			316,400
Reserve for DM and Q		378,829		—		—			378,829

Total	$	752,309	$	—	$	(16,249	)	$	736,060

	Balance at September 30, 2011		Additional Reserves		Usage			Balance at September 30, 2012
Reserve for excess and obsolete inventory
Reserve for NUEDEXTA	$	82,363	$	—	$	(25,283	)	$	57,080
Reserve for docosanol		316,400		—		—			316,400
Reserve for DM and Q		378,829		—		—			378,829

Total	$	777,592	$	—	$	(25,283	)	$	752,309


	Balance at September 30, 2010		Additional Reserves		Usage			Balance at September 30, 2011
Reserve for excess and obsolete inventory
Reserve for NUEDEXTA	$	—	$	82,363	$	—		$	82,363
Reserve for docosanol		316,400		—		—			316,400
Reserve for DM and Q		383,000		—		(4,171	)		378,829

Total	$	699,400	$	82,363	$	(4,171	)	$	777,592