Note 3 - Inventories

9 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Inventory Disclosure [Text Block]

3. 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:

	Dec ember 3 1 , 2018		March 31, 2018
	(in thousands)
Raw materials	$	460	$	410
Work in process		4,649		2,602
Finished goods		4,828		5,878
Supplies		175		144
Inventories, net	$	10,112	$	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

$0

and

$250,000

were charged to cost of sales for the

three

and

nine

months ended

December 

31,

2018,

respectively. There were

no

abnormal production costs for the

three

and

nine

months ended

December 

31,

2017.

Non-inventoriable fixed costs related to production of

$35,000

(astaxanthin) and

$176,000

(

$35,000

astaxanthin and

$141,000

spirulina) were charged to cost of sales for the

three

and

nine

months ended

December 

31,

2018,

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

$4,000

and

$88,000

were charged to cost of sales for the

three

and

nine

months ended

December 

31,

2017,

respectively.