Note 2 - Inventories

3 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Inventory Disclosure [Text Block]

2. INVENTORIES

Inventories are stated at the lower of cost or net realizable value. Cost is determined by the

first

-in,

first

-out method. Inventories consist of the following:

	June 30, 201 8		March 31, 201 8
	(in thousands)
Raw materials	$	371	$	410
Work in process		3,301		2,602
Finished goods		5,663		5,878
Supplies		152		144
Inventories, net	$	9,487	$	9,034

The Company recognizes abnormal production costs, including fixed cost variances from normal production capacity, as an expense in the period incurred. Abnormal costs related to spirulina production of

$250,000

were charged to cost of sales for the quarter ended

June 30, 2018.

There were

no

abnormal production costs for the quarter ended

June 30, 2017.

Non-inventoriable fixed costs related to spirulina production of

$125,000

were charged to cost of sales for the quarter ended

June 

30,

2018.

Non-inventoriable fixed costs related to spirulina production of

$9,000

were charged to cost of sales for the quarter ended

June 

30,

2017.