	December 31, 2018		December 31, 2017
Raw materials	$	279	$	—
Work in process		14,395		1,032
Finished goods		2,844		67
Total inventories	$	17,518	$	1,099

Balance Sheet Classification
Inventories	$	7,873	$	1,099
Prepaid and other long-term assets		9,645		—
Total inventories	$	17,518	$	1,099

We began capitalizing inventory for costs associated with Andexxa Gen 1 and Gen 2 supply upon FDA approval on May 3, 2018 and December 31, 2018, respectively. We began capitalizing inventory for costs associated with Bevyxxa during the fourth quarter of 2017 when it was determined that the inventory had a probable future economic benefit. As of December 31, 2018 and 2017, long-term inventories of $9.6 million and zero, respectively are classified as prepaid and other long-term assets as these inventories are not expected to be sold within the next twelve months, and the amount is deemed recoverable.

As of December 31, 2018 and 2017, we have made prepayments to manufacturers for the purchase of inventories. These are classified as short and long-term assets based on when the inventories are expected to be utilized in the manufacturing process and/or sold within the next twelve months.

We established a reserve of $2.2 million for estimated obsolescence of inventories as of December 31, 2018, and we recorded a related charge to cost of sales for $2.2 million. In developing our inventory reserve estimate, we consider forecasted demand, current inventory levels and our firm purchase commitments. If it is determined that inventory utilization will further diminish based on estimates of demand compared to product expiration, additional inventory write-downs may be required.

In December 2018, we recorded a charge to cost of sales for $10.3 million associated with our Gen 1 manufacturing process as a result of our commercial plans and related timelines to transition our customer base to product manufactured on our Gen 2 manufacturing process, which was approved by the FDA on December 31, 2018. This $10.3 million charge comprised of approximately $4.6 million related to the write-down of the cost basis of inventory on hand, $2.9 million related to the prepaid manufacturing, and $2.8 million related to the accrual of a liability for the remaining minimum purchase commitment.

	December 31, 2018		December 31, 2017
Long-term inventories	$	9,645	$	—
Prepaid manufacturing		10,894		9,600
Prepaid other long-term		38		9
Total prepaid and other long-term assets	$	20,577	$	9,609

As of December 31, 2018 and 2017, prepaid manufacturing on the Consolidated Balance Sheets represent prepayments of zero and $2.3 million, respectively, made to manufacturers for the purchase of inventories which we expect to be utilized in the manufacturing process and/or sold within the next twelve months. As of December 31, 2018 and 2017, long-term prepaid manufacturing of $10.9 million and $9.6 million, respectively, are classified as prepaid and other long-term assets as these inventories are not expected to be utilized in the manufacturing process and/or sold within the next twelve months.

	December 31, 2018			December 31, 2017
Computer equipment	$	1,335		$	1,329
Capitalized software		1,322			1,518
Equipment		8,737			6,973
Leasehold improvements		8,143			8,000
		19,537			17,820
Less accumulated depreciation and amortization		(14,301	)		(12,603	)
Property and equipment, net	$	5,236		$	5,217

	December 31, 2018		December 31, 2017
Commercial related	$	7,203	$	1,694
Deferred rent		960		879
Current portion of long term obligation to collaborator		880		—
Others		2,473		979
Total accrued and other liabilities	$	11,516	$	3,552