(2) Inventories

Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Components of inventory cost include materials, labor and manufacturing overhead. Inventories consist of the following (in thousands):

	June 30, 2017		December 31, 2016
Raw materials	$	785	$	856
Work in process		4,050		3,806
Finished goods		377		959
Total	$	5,212	$	5,621

The inventory reserve balance at June 30, 2017 and December 31, 2016 was $0.2 million and $0 million, respectively. During the three months ended March 31, 2017 and 2016, the Company recorded charges in the condensed consolidated statements of operations for excess and obsolete inventory of $0.2 million. No charges were recorded for the three months ended June 30, 2017 and 2016.