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Inventory
6 Months Ended
Jun. 30, 2017
Inventory  
Inventory

6.     Inventory

Our inventory balance consists of the following:

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

    

2017

    

2016

 

 

 

(in thousands)

 

Raw materials

 

$

109

 

$

109

 

Work-in-process

 

 

11,798

 

 

15,084

 

Finished goods

 

 

2,930

 

 

4,106

 

 

 

 

14,837

 

 

19,299

 

Inventories-current

 

 

2,930

 

 

4,106

 

Inventories-non-current

 

$

11,907

 

$

15,193

 

 

Inventories, stated at the lower of cost and net realizable value, consist of raw materials, work in process and finished goods. The ICLUSIG inventories acquired on June 1, 2016 totaling $4.0 million were recorded at fair value less costs to sell, and therefore, resulted in a higher cost of ICLUSIG revenues over a one year period from the acquisition date. At June 30, 2017, $2.9 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 June 30, 2017, $11.9 million of inventory was classified as non-current on the condensed consolidated balance sheets 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.