3. Inventories

Inventories consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Raw materials	$	1,111	$	572
Work-in-process		1,502		1,273
Finished goods		1,063		812
Total inventory	$	3,676	$	2,657

Work-in-process and finished goods as of June 30, 2018 and December 31, 2017 include conversion costs but not all material costs because the materials used in its production were previously written off.

The Company analyzed its inventory levels to identify inventory that may expire or has a cost basis in excess of its estimated realizable value. The Company performed an assessment of projected sales and evaluated the lower of cost or net realizable value and the potential excess inventory on hand at June 30, 2018. For the three and six months ended June 30, 2018 the Company recorded a $0.2 million and $0.8 million charge, respectively, to write-off inventory that may expire prior to sale which was recorded as cost of goods sold. During the three and six months ended June 30, 2017, the Company recorded a write-down of inventory of approximately $1.5 million for inventory that was forecasted to become obsolete due to expiration which is recorded in costs of goods sold in the accompanying condensed consolidated statements of operations.