4.	Consolidated Balance Sheet Details

Inventory, Net (in thousands)

Deferred costs represent the costs of product shipped for which recognition of revenue has been deferred.

Property and Equipment, Net (in thousands)


	December 31,
	2010			2010
Machinery, equipment and tooling	$	11,902		$	9,919
Construction in progress		5,416			6,735
Computer equipment and software		1,122			1,051
Furniture and fixtures		562			557
Leasehold improvements		780			780

Property and equipment, at cost		19,782			19,042
Less accumulated depreciation		(5,192	)		(3,608	)

	$	14,590		$	15,434

Depreciation expense for the years ended December 31, 2011, 2010 and 2009 was $1,584,000, $1,428,000 and $1,017,000, respectively.

Other Assets (in thousands)


	December 31,
	2011		2010
Prepaid Aradigm royalty expense	$	3,429	$	3,714
Debt acquisition costs		1,432		113
Deposits		1,090		617
Restricted cash		200		200

	$	6,151	$	4,644

Accrued Expenses (in thousands)


	December 31,
	2011		2010
Accrued product returns	$	2,446		0
Accrued discounts and allowances		2,153		813
Accrued interest expense		1,924		265
Accrued co-promotion service fee		1,615		1,190
Accrued clinical expense		945		3,629
Warrant liability		345		0
Accrued royalty expenses		303		286
Accrued sales and marketing expenses		153		286
Value added tax payable		0		989
Other accrued expenses		1,209		1,981

	$	11,093	$	9,439

Other Long-Term Liabilities (in thousands)