The Company works closely with third parties to manufacture and package finished goods for sale. Based on the arrangements with the manufacturer or packager, the Company will either take title to the finished goods at the time of shipment or at the time of arrival at the Company’s warehouses. The Company then holds such goods in inventory until distribution and sale. These finished goods inventories are stated at the lower of cost or net realizable value with cost determined using the first-in, first-out method.

The Company continually evaluates inventory for potential losses due to excess, obsolete or slow-moving goods by comparing sales history and projections to the inventory on hand. When evidence indicates that the carrying value may not be recoverable, a charge is taken to reduce the inventory to its current net realizable value. At March 31, 2026 and December 31, 2025, there were no cumulative net realizable value charges for potential obsolescence and discontinuance losses necessary.

The Company purchases the active pharmaceutical ingredient ("API") for Kristalose and Sancuso and maintains the inventory of that raw material. API for the Company's Vaprisol and Vibativ brands were included in the assets associated with the acquisition of those brands and are also included in the raw materials inventory.

As these APIs are consumed in the manufacture of our products, the value of the API involved is transferred from raw materials to finished goods.

Consigned inventory represents Authorized Generic inventory stored with our partner until shipment to their customers.


	March 31, 2026		December 31, 2025

Raw materials and work in process	$	10,061,130	$	9,832,293

Finished goods	5,268,211		5,646,315
Total inventories	15,329,341		15,478,608
Less non-current inventories	(9,875,505)		(9,253,090)
Total inventories classified as current	$	5,453,836	$	6,225,518

At March 31, 2026 and December 31, 2025, the Company's non-current inventories consisted of the following:


	March 31, 2026		December 31, 2025

Vibativ raw materials	$	5,557,928	$	4,883,895
Kristalose raw materials	2,263,417		2,261,500
Vaprisol raw materials	1,171,603		1,171,603
Sancuso raw materials	615,873		656,667

Acetadote raw materials	23,137		24,152
Ifetroban raw materials	40,878		40,879
Kristalose finished Ggoods	107,527		85,204
Vibativ finished goods	—		16,429
Caldolor finished goods	95,142		112,761


Total inventories classified as non-current	$	9,875,505	$	9,253,090