Note 5 - Inventories

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Inventory Disclosure [Text Block]

(5) Inventories

Inventories are stated at the lower of cost or net realizable value using the average cost method. Inventories consist of the following (in thousands):

	December 31,
	2016		2015
Raw materials	$	59		194
Work in process		—		36
Finished goods		76		529
Total	$	135		759

Write downs for excess or expired inventory are based on management’s estimates of forecasted usage of inventories and are included in cost of goods sold. A significant change in the timing or level of demand for certain products as compared to forecasted amounts

may

result in recording additional write downs for excess or expired inventory in the future. Charges to cost of goods sold for inventory write-downs, reserve adjustments, scrap, shrinkage and expired inventories totaled approximately

$52,000

and

$261,000

for the years ended

December

31,

2016

and

2015,

respectively. In addition, the Company determined that certain finished goods would be used in the Company’s upcoming Phase III clinical study and as a result

$597,000

of finished goods inventory has been charged to research and development expense during the period.