Note 6 - Facility Relocation

12 Months Ended

Mar. 31, 2018

Restructuring and Related Activities Disclosure [Text Block]

Note

Facility Relocation

August 2016,

we announced that we plan to shut down both our Omaha and Traverse City manufacturing facilities and relocate those operations to the new Bozeman building. The move of these

two

facilities, along with the current Bozeman operations, began in

March 2017

and is estimated to be completed by

June 30, 2018.

We estimate that the total costs of the relocation will be

$2,000,000,

which is comprised primarily of facility moving expenses, retention bonuses for existing personnel and payroll costs for duplicative personnel during the transition period. We incurred

$842,000

and

$725,000

of these relocation expenses during the years ended

March 31, 2018

and

2017,

respectively which are reflected in cost of revenues in the accompanying consolidated statements of operations (other than

$269,000

and

$45,000,

respectively which are included in general and administrative expenses). Facility relocation costs, which are associated with our Sterilization and Disinfection Control segment, are as follows for the year ended

March 31, 2018:

●

Retention bonuses for existing personnel of

$350,000

●

Duplicative employment costs of

$122,000

●

Moving costs of

$370,000

Facility relocation amounts accrued and paid for the year ended

March 31, 2018

are as follows (in thousands):

	March 31, 201 8
Beginning balance at March 31, 2017	$	673
Facility relocation expense		842
Cash payments		(1,107	)
Ending balance at March 31, 2018	$	408