Quarterly report pursuant to Section 13 or 15(d)

Inventory

v2.4.0.8
Inventory
 6 Months Ended
Jun. 30, 2014
Inventory Disclosure [Abstract]  
Inventory
Inventory

All components of inventory are valued at the lower of cost (first-in, first-out) or market. We adjust inventory to market value when the net realizable value is lower than the carrying cost of the inventory. Market value is determined based on estimated sales activity and margins.

The components of inventory as of June 30, 2014 and December 31, 2013, with no reserves recorded for either period, are as follows:
 
June 30, 2014
 
December 31,
2013
 
(unaudited)
 
 
Materials
$
603,719

 
$
652,818

Work-in-process
1,067,507

 
1,073,568

Finished goods
234,537

 
506,050

Total
$
1,905,763

 
$
2,232,436



During the three-month and six-month periods ended June 30, 2013, we capitalized $545,000 and $1.1 million, respectively, of inventory costs associated with our Lymphoseek® (technetium Tc 99m tilmanocept) Injection product. The Company capitalized no such costs during the same period in 2014. During the three-month and six-month periods ended June 30, 2014, we wrote off $45,000 and $55,000, respectively, of previously capitalized Lymphoseek inventory due to the consumption of the Lymphoseek material for product testing and development purposes.

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, estimated future sales and production rates, and estimated shelf lives. During the six-month periods ended June 30, 2014 and 2013, we recorded no obsolescence reserve for Lymphoseek inventory.