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Inventories

3 Months Ended

Mar. 31, 2019

3. Inventories

Inventories consist of the following (in thousands):

	March 31, 2019		December 31, 2018
Raw materials	$	1,381	$	1,337
Work-in-process		1,585		1,605
Finished goods		754		655
Total inventory	$	3,720	$	3,597

Work-in-process and finished goods as of March 31, 2019 and December 31, 2018 include conversion costs but not insulin cost because the insulin used in its production was previously written off in 2015. 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 March 31, 2019. Inventory that was forecasted to become obsolete due to expiration is recorded in costs of goods sold in the accompanying condensed consolidated statements of operations. For the three months ended March 31, 2019 and March 31, 2018 the Company recorded zero and a $0.6 million charge, respectively, to write-off inventory that may expire prior to sale which was recorded as cost of goods sold.