Note 2 - Inventories

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Inventory Disclosure [Text Block]

2. INVENTORIES

Inventories are stated at the lower of cost or market. Cost is determined by the

first

-in,

first

-out method. Inventories consist of the following:

	September 30, 201 7		March 31, 201 7
	(in thousands)
Raw materials	$	326	$	347
Work in process		2,504		2,323
Finished goods (1)		6,335		5,173
Supplies		150		129
Inventories, net	$	9,315	$	7,972

( 1 ) Net of reserve for obsolescence of $3,000 at September  30, 2017 and March  31, 2017, respectively.

The Company recognizes abnormal production costs, including fixed cost variances from normal production capacity, as an expense in the period incurred. Non-inventoriable fixed cost

s related to spirulina production of

$75,000

and

$84,000

were charged to cost of sales for the

three

and

six

months ended

September 

30,

2017,

respectively. Non-inventoriable fixed costs related to astaxanthin production of

$73,000

and

$101,000

were charged to cost of sales for the

three

and

six

months ended

September 

30,

2016,

respectively