6. Inventory

Our inventory balance consists of the following:


	September 30,		December 31,
	2016		2015
	(in thousands)
Work-in-process	$	14,829	$	17,555
Finished goods		4,078		1,783
		18,907		19,338
Inventories-current		4,078		1,783
Inventories-non-current	$	14,829	$	17,555

Inventories, stated at the lower of cost or market, consist of work in process and finished goods. The ICLUSIG inventories acquired on June 1, 2016 were recorded at fair value less costs to sell, and therefore, will result in a higher cost of product revenues for the next nine months. At September 30, 2016, $4.1 million of inventory was classified as current on the condensed consolidated balance sheet as we expect this inventory to be consumed for commercial use within the next twelve months. At September 30, 2016, $14.8 million of inventory was classified as non-current on the condensed consolidated balance sheet as we did not expect this inventory to be consumed for commercial use within the next twelve months. We obtain some inventory components from a limited number of suppliers due to technology, availability, price, quality or other considerations. The loss of a supplier, the deterioration of our relationship with a supplier, or any unilateral violation of the contractual terms under which we are supplied components by a supplier could adversely affect our total revenues and gross margins.

JAKAFI raw materials and work-in-process inventory is not subject to expiration and the shelf life for finished goods inventory is 36 months from the start of manufacturing of the finished goods. ICLUSIG finished goods inventory has a shelf life of 24 months from the start of manufacturing of the finished goods. We evaluate for potential excess inventory by analyzing current and future product demand relative to the remaining product shelf life. We build demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage.