Inventory

Due to the deferral of revenue under the BARDA Contract (see Note 2 for additional information), amounts that would be otherwise recorded as cost of goods sold for delivered courses are recorded as deferred costs on the condensed consolidated balance sheet. Inventory includes costs related to the manufacture of TPOXX®.

Inventory consisted of the following:



	As of
	June 30, 2018		December 31, 2017
Work in-process	$	1,950,445	2,025,445
Finished goods	957,804		957,804
Inventory	$	2,908,249	2,983,249

For the three and six months ended June 30, 2017, research and development expenses included net inventory-related losses of approximately $0 and $536,000. The $536,000 loss for the six months ended June 30, 2017, related to a $686,000 inventory write-down, partially offset by credits received from contract manufacturing organizations (“CMOs”) in connection with the inventory write-down.