Consolidated Balance Sheet Details

Inventory (in thousands)



	December 31,
	2014		2013
Raw materials	$	3,453	$	2,770
Work in process	7,998		6,054
Finished goods	972		1,112
Deferred cost of goods sold	1,016		—
	$	13,439	$	9,936

Deferred cost of goods sold consists of the costs of Zohydro ER associated with the deferred revenue, which are included in inventory until such time the related deferred revenue is recognized.

Property and Equipment, Net (in thousands)



	December 31,
	2014			2013
Machinery, equipment and tooling	$	12,847		$	12,479
Construction in progress	4,974			6,222
Computer equipment and software	1,038			951
Leasehold improvements	783			783
Furniture and fixtures	615			628
Property and equipment, at cost	20,257			21,063
Less accumulated depreciation	(9,639		)	(8,052		)
	$	10,618		$	13,011

Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $1,625,000, $1,806,000 and $1,599,000, respectively.

Other Assets (in thousands)



	December 31,
	2014		2013
Prepaid Aradigm royalty expense	$	2,286	$	2,571
Prepaid Daravita royalty expense	1,846		2,318
Debt acquisition costs	241		969
Deposits	1,033		431
Restricted cash	—		200
Other assets	99		125
	$	5,505	$	6,614

Accrued Expenses (in thousands)



	December 31,
	2014		2013
Accrued product returns	$	4,694	$	5,445
Liability for product transition for new formulation	3,041		—
Non-cancellable inventory purchase commitments for existing formulation	2,594		—
Accrued discounts and allowances	1,274		4,239
Accrued interest expense, current portion	—		3,033
Accrued clinical trial costs	1,785		1,238
Accrued sales and marketing costs	318		1,161
Astellas tail payment, current portion	—		1,131
Other accrued expenses	1,780		2,618
	$	15,486	$	18,865

Other Long-Term Liabilities (in thousands)



	December 31,
	2014		2013
Interest expense payable, less current portion	$	—	$	5,901
Deferred rent	664		77
Embedded derivatives	—		233
Other long-term liabilities	389		285
	$	1,053	$	6,496