3. Inventories

Inventories consist of the following (in thousands):

	September 30, 2018		December 31, 2017
Raw materials	$	951	$	572
Work-in-process		732		1,273
Finished goods		1,102		812
Total inventory	$	2,785	$	2,657

Work-in-process and finished goods as of September 30, 2018 and December 31, 2017 include conversion costs but not all material costs because much of 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 September 30, 2018. For the three and nine months ended September 30, 2018 the Company recorded a $1.0 million and $1.8 million write-off, respectively.