Note 9 - Other Commitments and Contingencies

12 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

9. OTHER COMMITMENTS AND CONTINGENCIES

From time to time, the Company

may

be involved in litigation and investigations relating to claims and matters arising out of its operations in the normal course of business.

On

October 2, 2019,

a shareholder of the Company, Meridian OHC Partners, LP (“Meridian”), filed a complaint in the United States District Court, District of Hawaii, against the Board of Directors seeking to proceed derivatively on behalf of the Company. The Company is named as a nominal defendant. The complaint alleges, among other things, that the directors have breached their fiduciary duties, in overseeing the Company. Meridian seeks declaratory and injunctive relief and an award of damages to the Company. The case is

Meridian v. Davis et al. (Cyanotech)

,

No.

19

-cv-

0536

(D. Hawaii). The Company and the defendants have filed motions to dismiss. At

March 31, 2020,

the probability and magnitude of any potential loss cannot be estimated.

As of

March 31, 2020,

2019

and

2018,

the Company had purchase obligations of

$825,000,

$951,000

and

$449,000,

respectively, including agreements to purchase goods or services that are enforceable, are legally binding and specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. The term of the minimum purchase agreement is for

ten

years, expiring in

April 2026

and purchase obligations do

not

include agreements that are cancelable without penalty.