3. Inventories

The components of inventory are as follows:


	June 30,		December 31,
	2016		2015
	(in thousands)
Work-in-process	$	-	$	4,179
Finished goods		43,889		54,527
Total	$	43,889	$	58,706

The inventory reserve balance at June 30, 2016 and December 31, 2015 was $15.3 million and $2.4 million, respectively. During the three and six months ended June 30, 2016, the Company recorded charges in the condensed consolidated statements of operations for excess and obsolete inventory of $12.7 million and $16.3 million, respectively. Charges for excess and obsolete inventory were immaterial in the three and six months ended June 30, 2015. Included in the excess and obsolete inventory charges in the three and six months ended June 30, 2016, was a $7.6 million increase in the inventory reserve balance for certain MYALEPT inventory that was identified to be unsaleable. Also included in the excess and obsolete inventory charges in the six months ended June 30, 2016 was a $1.1 million charge related to certain JUXTAPID inventory that was fully reserved in the first quarter of 2016 and scrapped in the second quarter of 2016. The remaining excess and obsolete inventory charges in the three and six months ended June 30, 2016 relate to materials on hand that are not expected to be utilized prior to expiration. The determination of excess or obsolete inventory requires the Company to estimate future demand for its products based on its internal sales forecasts which it then compares to inventory on hand after consideration of expiration dates. To the extent the Company’s actual sales or subsequent sale forecasts decrease, the Company could be required to record additional inventory reserves in future periods, which could have a material negative impact on its gross margin.