6. Balance Sheet Components

Inventories

Inventories consisted of the following (in thousands):

	March 31, 2018		December 31, 2017
Current:
Work in process	$	3,185	$	1,032
Finished goods		63		67
Total inventories	$	3,248	$	1,099

We began capitalizing inventory during the quarter ended December 31, 2017 as a result of the FDA’s approval of Bevyxxa, as the related costs are expected to be recoverable through the commercialization of the product. As of March 31, 2018 and December 31, 2017, prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets include prepayments of $8.2 million and $2.3 million, respectively, made to a manufacturer for the purchase of inventories which we expect to be converted to finished goods within the next twelve months. Prepayments of $4.8 million and $9.6 million as of March 31, 2018 and December 31, 2017, respectively, is classified as prepaid and other long-term assets as the production is expected after the next twelve months and the amount is deemed recoverable.

No amounts have been capitalized as inventory for Andexxa as of March 31, 2018.

No losses were incurred on valuation of inventories at lower of cost or market value or write-off of obsolete inventories during the three months ended March 31, 2018.

Accrued and Other Liabilities

Accrued and other liabilities consist of the following (in thousands):

	March 31, 2018		December 31, 2017
Commercial related	$	2,663	$	1,694
Legal and accounting fees		329		256
Deferred rent		899		879
Product revenue provision		53		–
Other		1,697		723
Total accrued liabilities	$	5,641	$	3,552