Annual report pursuant to Section 13 and 15(d)

Inventory

v2.4.1.9
Inventory
12 Months Ended
Dec. 31, 2014
Inventory Disclosure [Abstract]  
Inventory
Inventory
 
The components of net inventory at December 31, 2014 and 2013, net of reserves of $539,000 and $0, respectively, are as follows:
 
2014
 
2013
Materials
$

 
$
652,818

Work in process
495,449

 
1,073,568

Finished goods
436,936

 
$
506,050

 
$
932,385

 
$
2,232,436


 
During 2014 and 2013, we capitalized $110,000 and $2.4 million, respectively, of inventory costs associated with our Lymphoseek product. During 2014 and 2013, we wrote off $198,000 and $298,000, respectively, of previously capitalized Lymphoseek inventory due to the consumption of the Lymphoseek material in product development activities.
  
We estimate a reserve for obsolete inventory based on management’s judgment of probable future commercial use, which is based on an analysis of current inventory levels, historical and estimated future sales and production rates, and estimated shelf lives. During 2014, we recorded an obsolescence reserve for $539,000 of Lymphoseek inventory related to a specific lot that was originally produced for commercial validation purposes and that is nearing its product expiry and therefore is no longer expected to be sold.