Note 4 - Inventories, Net

12 Months Ended

Mar. 31, 2014

4. INVENTORIES, NET

Inventories, which are stated at the lower of cost (first-in, first-out) or market, consist of the following:

	March 31,
	2014		2013
Finished goods, net	$	15,582	$	30,531
Raw materials, net		10,367		17,766
Work in progress, net		6,769		4,717
Total, net	$	32,718	$	53,014

At March 31, 2014, the Company reclassed $18,369 ($19,156 of inventories, less provisions for slow moving, excess and obsolete inventory of $787) to reflect the inventories that are included in the assets held for sale related to the Transaction, as disclosed in Footnote 3 – Discontinued Operations.

On a continuing basis, inventory quantities on hand are reviewed and an analysis of the provision for slow moving, excess and obsolete inventory is performed based primarily on the Company’s sales history and anticipated future demand. Such provision for slow moving, excess and obsolete inventory approximated $953 and $1,091 at March 31, 2014 and 2013, respectively.

In fiscal 2013 we identified an overstatement of inventories at our West Virginia location that arose during the five year period ended March 31, 2012 and the nine months ended December 31, 2012. After consideration of both quantitative and qualitative factors, we determined the amounts were not material to any of those prior period financial statements or the fiscal 2013 consolidated results of operations and thus corrected the inventory balance in the fiscal year 2013 and the three months ended March 31, 2013. The adjustment resulted in a reduction of inventory of $829, with a corresponding increase in cost of sales in the consolidated statement of operations for the fiscal year ended March 31, 2013.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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